Mining & Natural Resources Law

"Alliance Legal Center" offers comprehensive legal support to local and foreign investors operating in Azerbaijan's mining industry, covering subsoil use, exploration, extraction, and processing of mineral resources. Our team provides professional solutions at every stage, from managing relations with regulatory authorities to ensuring compliance with environmental standards.

Our Service Areas:

• Precious and Base Metals: Legal assistance in the development of gold, silver, copper, zinc, and other strategic metal deposits.
• Non-Metallic and Construction Materials: Project support for industrially significant deposits such as limestone, travertine, marble, gypsum, bentonite clay, and quartz sand.
• Investment Agreements and PSAs: Preparation and legal expertise of Production Sharing Agreements (PSA) and complex investment contracts.
• Licensing and Permits: Managing the process of obtaining subsoil use licenses, as well as exploration and extraction permits.
• Land and Property Law: Land allocation for mining sites, execution of lease agreements, and regulation of property matters.
• Environmental Law and ESG Standards: Environmental Impact Assessments (EIA) and ensuring compliance with international Environmental, Social, and Governance (ESG) standards.
• Tax and Customs Planning: Application of special tax regimes for mining projects and legal regulation of customs exemptions during equipment imports.

Regional Resource Potential and Investment Opportunities

Azerbaijan's rich and diversified resource base creates unique opportunities for investors. Our legal services cover all strategic regions of the country:

1. Karabakh and East Zangezur (New Strategic Region)

   The Kalbajar, Zangilan, and Lachin districts are abundant in gold, copper, and polymetallic deposits (e.g., Soyudlu, Veynali). Fiscal Incentives (until 2033): According to the legislation of the Republic of Azerbaijan, residents of the liberated territories are fully exempt (0%) from profit (income), property, land, and simplified taxes until January 1, 2033. Additionally, a full exemption from VAT and customs duties applies to the import of machinery, equipment, and raw materials for relevant economic activities.

2. Nakhchivan Autonomous Republic

   Nakhchivan is a critical mining hub for the region. The Gumushlu and Agdara (zinc-lead) and Parabachay (copper-molybdenum) deposits, as well as the world-renowned Nakhchivan Rock Salt and Shahtakhti Travertin deposits, hold high investment potential. Special Fiscal Regime (2026–2036): According to Azerbaijani legislation, starting from January 1, 2026, residents of the Nakhchivan Autonomous Republic are fully exempt from profit (income), property, and land taxes, simplified tax, and customs duties on imports for production purposes for a period of 10 years.

3. Other Industrial Regions

   We provide legal audit (Due Diligence) services for the privatization or re-commissioning of existing deposits in the Gadabay and Dashkasan regions (gold, iron ore), as well as the Balakan region (polymetallic - Filizchay deposit).

Frequently Asked Questions (FAQ)

• What types of contracts are applied to mining activities in Azerbaijan?
  In Azerbaijan, the extraction of precious metals is typically carried out under Production Sharing Agreements (PSA), while other mineral extractions are regulated through licenses and investment contracts.
• Can foreign investors own mining deposits?
  Subsoil resources are the exclusive property of the state. Investors acquire the rights to subsoil use (exploration and extraction) through auctions or competitive tenders.
• What is the main advantage of starting a business in Nakhchivan?
  The 10-year tax holiday starting in 2026 and its strategic logistical position make Nakhchivan a "fiscal hub" for investors.
• What are the benefits of being a resident of industrial parks?
  In addition to the 10-year tax exemption, all necessary infrastructure (electricity, gas, communications) is fully provided by the state.
• How does Alliance Legal Center assist in obtaining a license?
  We conduct legal audits, prepare auction documentation, and provide full legal oversight to ensure compliance with license conditions.

Why Alliance Legal Center?