In order to implement the tasks arising from the Decree of the
President of the Republic of Azerbaijan, Ilham Aliyev, dated 20
April 2026 (No. 649), which provides for the transfer of several
limestone and sand-gravel deposits located in the Garadagh district
of Baku city, as well as in Absheron, Zagatala, Balakan, Oghuz, and
Imishli districts to the use of “AzerGold” CJSC, a dedicated Task
Force established within the Company has commenced its activities.
At the same time, work has begun on establishing the relevant
organizational structure within “AzerGold” CJSC to ensure the
efficient and coordinated implementation of the tasks arising from
the Decree.


The Task Force has developed a short-term action plan aimed at
increasing efficiency in the exploitation of non-metallic mineral
deposits and ensuring more effective coverage of market demand.
Within this framework, close cooperation meetings have been held
with representatives of the State Mineral Resources Utilization
Agency under the Ministry of Ecology and Natural Resources, and
field visits to the relevant sites have been organized.


During monitoring and assessment, preliminary analyses were
conducted on the technical accessibility of the areas, existing
infrastructure, logistics capabilities, relief features,
environmental conditions and raw material reserves. As a result, it
was decided to conduct a phased analysis of historical and
geological data and start exploration work to clarify the raw
material reserve base of the areas and assess the efficiency of the
existing fields for exploitation. Geological research work has
already begun in accordance with the prepared exploration program
for the “Guzdek Mulda” located in the Garadagh district and
Absheron district of Baku. It is planned to start relevant work on
the Imishli field from June.


For deposits located in the north-western regions covered by the
Decree—“Katekhchay I and II” in Zagatala district, “Balakanchay I
and II” in Balakan district, and “Aghchay I” sand-gravel deposit in
Oghuz district—activities are planned to commence in the next
phase.


This phased approach is driven by several factors, including the
distance of these deposits from major consumer markets,
particularly Baku, limited existing infrastructure, challenging
terrain conditions, and higher logistics and transportation costs,
which currently present risks to economic viability. In this
regard, the approval and implementation of incentive mechanisms
provided for in the Decree are considered key to ensuring the
successful organization of operations in these deposits. As a
state-owned company, “AzerGold” CJSC prioritizes profitability and
efficiency in its operations, making this issue of particular
importance.







It should be noted that the main objective of the
Decree—considered an important institutional reform in the
non-metallic mineral resources sector titled “On improving
activities in the field of subsoil use (excluding oil and gas), and
amending certain decrees and orders of the President of the
Republic of Azerbaijan”—is to ensure more transparent, flexible,
and efficient management of subsoil resources.


According to the Decree, from 2027 onwards, licensing, expert
evaluation, and auction processes are planned to be conducted
through the “Digital Ecology” system based on a “single window”
principle. This will contribute to the simplification of
procedures, strengthening of control mechanisms, and advancement of
digital transformation. The reforms are also expected to support
more effective environmental protection, sustainable extraction of
high-quality raw materials for the construction industry, creation
of new jobs, and the development of a more favorable business
environment for entrepreneurs.


It should also be noted that this Decree builds upon previous
reforms in the management of non-metal mineral deposits. Earlier,
in line with the Presidential Order dated 23 December 2024,
“AzerGold” CJSC conducted a comprehensive assessment of the sector
in 2025 with the participation of the internationally renowned
Boston Consulting Group. A series of seminars were organized with
relevant government agencies and private sector stakeholders, and
market assessments were carried out. During 2025, more than 70
deposits across Baku, Absheron-Khizi, Guba-Khachmaz, Karabakh, East
Zangezur, and other economic regions were studied. Based on the
findings, proposals for improving institutional governance and the
regulatory framework in line with international best practices were
prepared and submitted to the Cabinet of Ministers.