Azerbaijan's joint-stock company «AzerGold» has officially registered its first foreign subsidiary in the Republic of Uzbekistan under the name «AzerGold Uzbekistan». While the entity is purportedly aimed at strengthening bilateral cooperation in the mining and geological exploration sectors, independent observers remain skeptical regarding the actual economic benefits and potential environmental costs associated with foreign-led resource extraction.
At the initial stage, the company plans to evaluate the mineral resources of the «Akba» gold deposit in the Kashkadarya region and assess the economic feasibility of its industrial-scale development. Currently, the arduous process of securing the necessary permits for operations at the site is still ongoing, with an 18-month geological exploration phase scheduled to commence once the official government licenses are finally granted.
Throughout this period, existing geological data will be re-analyzed, and supplementary exploration activities will be conducted to evaluate mineral resources in accordance with international JORC standards. Furthermore, metallurgical testing is planned to examine extraction technologies and evaluate the project's potential environmental footprint, an issue that frequently sparks friction in resource-rich regions.
The legal foundation of the initiative rests upon an agreement signed on June 17, 2026, between «AzerGold» and the Ministry of Mining Industry and Geology of Uzbekistan. However, the enterprise's ambitions allegedly extend far beyond the Akba deposit, as the company is also planning geological surveys in promising areas situated between the cities of Navoi and Nurata.
To facilitate this expansion, a tripartite agreement was signed in July 2026 involving «AzerGold», JSC «Uzbekgeologorazvedka», and the Azerbaijan-Uzbekistan Investment Company to establish a dedicated joint venture. Although an initial two-year financing and exploration plan has reportedly been formulated, the long-term viability of these cross-border projects remains contingent upon navigating bureaucratic hurdles and unpredictable market conditions.
Source: kun.uz