Uzbekistan Partners With Azerbaijani Firms to Boost Mining and Processing

Uzbek officials aim to keep more of the profits from their mineral wealth while courting foreign technical know-how.

TASHKENT — Uzbekistan and Azerbaijan signed a package of pacts June 16 that will see Azerbaijani companies take leading roles in developing Uzbek mineral projects, including a major gold field, officials said. The agreements, concluded during a ministerial visit, also cover banking cooperation and a tourism investment in the Jizzakh region.

Under the mining arrangement, CJSC AzerGold will lead work on a gold site in Uzbekistan, with Uzbek authorities signaling interest in learning how to refine and sell bullion domestically rather than exporting raw ore. The government’s deputy mining minister has outlined plans to map precious and strategic mineral deposits in southern provinces and in Karakalpakstan, part of a broader push to survey and exploit local resources more fully.

NEQSOL Holding, an international conglomerate with offices in Baku and Europe, will join the effort to develop critical minerals. The firm — which only recently began mining operations — says it will introduce modern exploration practices and internationally recognized evaluation standards. Company and government representatives did not release detailed financial terms or timetables for the projects.

Officials also agreed to measures intended to streamline cross-border banking services and announced an investment to build a resort and exhibition complex on Lake Aydarkul, modeled on tourist facilities in Azerbaijan. Local authorities expect the development to spur regional visitor traffic and create jobs.

A mining economist in Tashkent cautioned that technology transfer and local processing capacity will take time, and that contracts should include requirements for training and local procurement. Community leaders in areas eyed for exploration say they want clearer guarantees on environmental safeguards and benefit-sharing. For now, the deals mark a deepening economic tie between the two Central Asian governments as Uzbekistan seeks greater control over the production cycle of its mineral wealth.