Azerbaijan Approves Amendment to Key Mining Agreement with U.S. Firm
The Milli Majlis of Azerbaijan has approved a significant amendment to the agreement on the exploration, development, and production sharing of several mineral deposits between the Ministry of Ecology and Natural Resources of Azerbaijan and U.S.-based R.V. Investment Group Services, LLC. This move aims to enhance the country's mining sector and ensure the continuation of strategic projects.
R.V. Investment Group Services, LLC participates in several projects in Azerbaijan, in particular, in the exploration and development of gold deposits. Its activities, as a rule, include geological surveys, feasibility studies and the organization of mining operations for the extraction and processing of gold.
The amended agreement, signed in Baku on May 24, 2024, covers gold, copper, and polymetallic ore deposits in Gadabay, Gosha, Khar-Khar, Karadag, the Ordubad Group (Piyazbashi, Agyurd, Shekerdere, Kelaki), Gizilbulag, Demirli, and Vejnali. The approval by the Milli Majlis, guided by Article 95, Part I, Clause 4 of the Constitution, confirms the acceptance, approval, and permission for the implementation of the amendment.
The amendment addresses the guarantees and obligations of the Azerbaijani government to the contractor, ensuring that the legal rights and interests of R.V. Investment Group Services, LLC are preserved and cannot be altered without the firm's prior consent. This provision aims to secure the firm's investments and operations in Azerbaijan's mining sector.
The law stipulates that the amendment, along with its legal consequences, becomes an integral part of the original agreement and retains full legal force. The agreement, as modified, continues to be fully effective under Azerbaijani law, further cementing the partnership between Azerbaijan and the U.S. firm in exploiting the country's rich mineral resources.
The ratification of this amendment underscores Azerbaijan's commitment to fostering a favorable investment climate and advancing its mining industry, which is crucial for the nation's economic diversification and growth.
President Ilham Aliyev signed the law on June 21, 2024, solidifying the government's support for the amended agreement and its implementation, marking a new chapter in Azerbaijan's efforts to leverage its natural resources through international cooperation.
The Amendment Law was published on June 2, 2024.
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