Ecology Ministry, AzerGold sign MoU

AMemorandum of Understanding (MoU) was signed between the Ministry of Ecology and Natural Resources of Azerbaijan and AzerGold CJSC on October 25.

The MoU covers the expansion and optimization of cooperation within the framework of new parameters, support for scientific and technological development, contribution to the improvement of the legislative framework in the field of geological exploration and mining.

The memorandum provides for the study, exploration and development of ore deposits, the use of new technologies in this area, joint activities in the direction of geological exploration of a number of mineral deposits in use by AzerGold, the digitization of information on non-ferrous metals, and the expansion of cooperation directions.

After the signing of the memorandum, the delegation of the Ministry got acquainted with the activities of the round-the-clock.operating gold mining enterprise Chovdar.

Gold and silver are currently being mined in Azerbaijan from the Gadabay and Gosha deposits within the framework of the Production Sharing Agreement (PSA), signed on August 21, 1997.

The contract provides for the development of six fields: one in Nakhchivan, two in the Gadabay, and three in Kalbajar and Zangilan, currently occupied by Armenian armed forces.

The share of Azerbaijan in the contract is 51 percent, of the Anglo Asian Mining Plc. – 49 percent.

According to the contract, in general, 400 tons of gold are planned to be extracted from these deposits.

The extraction of the first gold began in 2009 from the Gadabay deposit, the extraction of silver-in 2010.

AzerGold CJSC has begun production at the Chovdar field in 2016. As a result of exports of 93,000 ounces of gold extracted from the deposit and 142,000 ounces of silver, the country’s economy received an income in the amount of 205 million manats ($120.59 million).

Gold mining in Azerbaijan amounted to 2,802 kg in JanuaryAugust 2018. Last year, 6,390 kg of gold was mined in Azerbaijan.