In order to fulfill the instructions arising from Decree No. 649 of President Ilham Aliyev dated April 20, which provides for the transfer of several limestone and sand-gravel deposits located in the Garadagh district of Baku, and the Absheron, Zagatala, Balakan, Oguz, and Imishli districts to AzerGold CJSC, a task force has been established within the company. In parallel, to ensure the prompt and coordinated implementation of the tasks arising from the decree, work has also begun to establish an appropriate organizational structure within AzerGold CJSC.
The task force quickly prepared an action plan to improve the efficiency of non-metallic mineral deposit operations and more effectively meet market demands. Within this framework, meetings on various issues were held and site visits were organized in close cooperation with representatives of the State Agency for the Use of Mineral Resources under the Ministry of Ecology and Natural Resources.
During the monitoring and assessment process, preliminary analyses were conducted of the technical accessibility of the sites, existing infrastructure, logistical capabilities, topographic features, environmental conditions, and raw material reserves. As a result, in order to clarify the resource base of the territories and assess the exploitation potential of existing deposits, a decision was made to conduct a phased analysis of historical and geological data and commence geological exploration. In accordance with the exploration program prepared for the Guzdek trench, located in the Garadagh district of Baku and the Absheron district, exploration work has already begun. Similar work is planned to begin at the Imishli deposit in June.
Operations at the sand and gravel deposits envisaged in the Decree, located in the northwestern regions of the country – Katekhchay I and II in the Zagatala district, Balakenchay I and II in the Balakan district, and Agchay I in the Oguz district – are planned to commence in the next stage.
This is due to the deposits’ remoteness from key markets, particularly the capital Baku, limited existing infrastructure, terrain features, logistical and transportation costs, and the risk of economic inefficiency in the current situation. From this perspective, the approval and application of the incentive mechanisms stipulated in the decree is considered a key factor in organizing mining operations at these deposits. Since profitability is one of the key performance indicators of AzerGold CJSC, as a state-owned company, this issue is of particular importance to the company. (Report)