Azerbaijani environmentalists protest illegal extraction of Kyzylbulag gold and Demirli copper-molybdenum deposits in the territories of Azerbaijan where Russian peacekeepers temporarily operate

Call for Accountable Mining

Starting on December 12, 2022, Azerbaijani environmentalists protest illegal extraction of Kyzylbulag gold and Demirli copper-molybdenum deposits in the territories of Azerbaijan where Russian peacekeepers temporarily operate. Activists call to prevent ecocide and illegal exploitation that threaten the planet’s viability with slogans: "Stop ecological terrorism!", "Do not prevent monitoring in our own territories!"

The main demand is to create conditions for Azerbaijani specialists to conduct monitoring and evaluation in mineral deposits located in the territories of Azerbaijan. Protesters urge Russian peacekeepers to think about their responsibility with the environment.

Protect Environment Before Ground is Even Broken

The issue is that neither company R.V. Investment, nor company Anglo-Asian Mining, which has signed a contract with the government of Azerbaijan, operate in the area. Kyzylbulag gold deposit located in the outskirts of Aghdara city of Azerbaijan, in the area of responsibility of Russian peacekeepers. According to the agreement signed with the Ministry of Ecology and Natural Resources of the Republic of Azerbaijan the R.V. Investment company was authorized for mining of the reserve. The field is located in the area where the Russian peacekeeping contingent is temporarily stationed which delays execution of agreement.

Within the framework of the PSA (Production Sharing Agreement) signed with Azerbaijan government on August 21 1997, the company registered in Great Britain, Anglo-Asian Mining, has legal right to conduct exploitation of mineral deposits. Kyzylbulag field is also in the list of mineral reserves included in the contract.

Kyzylbulag with reserves of 17.5 tons of gold, 18.9 tons of silver, 47.9 thousand tons of copper, 274.4 thousand tons of sulfur, and Demirli deposit with reserves of 100 million tons of copper was illegally exploited by Base Metals, a subsidiary of the Australian company of International Base Metals Limited by 2020.

The company paid $38.5 million in taxes to the so-called regime in Karabakh in 2019 alone. 60 percent of exports of the so-called regime and 32 percent of its total income were provided by this company. It was proved that, the company earned 178 million dollars as a result of merciless exploitation of the Kyzylbulag field in 2009-2017. The Base Metals company has been operating in Karabakh since 2010. According to preliminary estimates, its annual income is 8 million US dollars. Thus, 12,000 tons of ore was extracted from the Kyzylbulag field every month by this company and after preliminary processing at the refining plant, taken to Armenia for reprocessing and exported to the world market.

Money Laundering, Drug Trafficking and Illegal Arms Trade

The large-scale illegal business in the mining sector in Karabakh not only criminally enriches the political leaders of Armenia and the suspicious Base Metals, but also causes serious damage to the ecology of the entire region. However, there is no information about the business, as well as the income from this business, on the official website of International Base Metals Limited, which is part of the Vallex Group holding. Internet sources only refer to company's activities in offshore zones. This fact creates the possibility of drug trafficking and the financing of terrorism.

Evidences indicate that, the exploitation of the Kyzylbulag and Demirli deposits, located 15 kilometers away from each other, was stopped in the aftermath of the 2020 Nagorno-Karabakh war, liberation of Azerbaijani internationally recognized territories from Armenian occupation lasting almost 30 years. However, after the Russian billionaire Ruben Vardanyan, who is involved in money laundering, drug trafficking and illegal arms trade, came to Karabakh to avoid the international sanctions imposed on Russia and was brought to the leadership of the Karabakh separatists - the so-called "state minister" post, illegal activities resumed again in the fields.

Recently, through the images of Azersky satellites, it has been determined that illegal geological exploration, mining and construction of new infrastructure elements (roads, buildings, facilities, etc.) were carried out by Armenians in the 740-hectare area of the Demirli mine field. As a result, the environment was greatly damaged, rivers and groundwater were polluted with heavy metals. For many years, ecocides have been committed in these areas, fires have been set, water basins subjected to chemical pollution, and resources belonging to the state of Azerbaijan subjected to illegal exploitation.

World's Collective Effort within International Environmental Law

These acts are contrary to the legislation of the Republic of Azerbaijan, as well as the requirements of international conventions and international law. From national legislation perspective, according to Article 14 of the Constitution of Azerbaijan, "Natural resources belong to the Republic of Azerbaijan without prejudice to the rights and interests of any natural or legal persons." Therefore, the state of Azerbaijan is the sole owner of the natural resources in its territory recognized by the international community. Also, according to the Criminal Code of the Republic of Azerbaijan (chapters 25, 28, 31, including articles 192.3.1., 192.3.2.), appropriate sanction is applied in connection with illegal entrepreneurial activity, especially when causing a large amount of damage to obtain income.

According to the Criminal Code of the Republic of Azerbaijan, those who engaged in illegal entrepreneurship in the Kyzylbulag and Demirli mines and looted our resources, the legal owner of which is the state of Azerbaijan, face a prison sentence of up to 7 years, and they must pay 4 times the damage caused to the Republic of Azerbaijan to state budget.

Illegal activities and environmental terrorism committed in the areas where Russian peacekeepers are temporarily stationed directly contradict international conventions. In particular, the Hague Convention on the Protection of Cultural Values during Military Conflicts, the IV Hague Regulations adopted in 1907, and the IV Geneva Convention adopted in 1949 categorically ban the illegal activity. The Geneva Convention on Occupied Territories prohibits companies from mining in areas that occupied for a long time and whose actual status is unclear. According to the international strategy of the Initiative for Transparency in the Mining Industry, companies must enter into an agreement with the state that has legal rights to extract natural resources.

Environmental problems, pollution of the environment and water reservoirs contradict the Sustainable Development Concept and Sustainable Development Goals adopted by the UN. Including illegal exploitation of deposits, damage to the environment, pollution of water basins, and failure to create conditions for the monitoring of the state - citizens, who are the legal owners of these areas, is completely contrary to the "Convention on environmental impact assessment in a transboundary context" (Espoo Convention) adopted by the UN,  and "UN Convention on the European Economic Commission on access to information on environmental issues, public participation in decision-making and open court of justice (Aarhus Convention).

Fake News Blown by Armenia to Misinform

Nevertheless, the Armenian press and their patrons are circulating fabricated claims about Azerbaijanis blocking the Shusha-Khankendi road, causing humanitarian disaster in the region. In fact, it is easy to see through modern IT means that there is no reason for the Armenians to make fake news, the road was blocked by the Russian peacekeeping forces temporarily stationed in the area. The peacekeeping forces blocked the road with heavy trucks and military equipment from both sides to prevent the free movement of Azerbaijanis in their territory and the movement of cars from Khankendi to Yerevan (and vice versa).

The Azerbaijani activists even invited the Armenians living in Karabakh - the Armenian citizens of Azerbaijan - to join the action, and declared that the way is completely open for any humanitarian visits.

Let’s Voice Our Opinion about Environmental Protection

Azerbaijani civil society representatives and eco-activists protest is in line with citizen participation, civic engagement and public control based on national and international law, the principles of Transparency in the Mining Industry, the requirements of the Espoo and Aarhus Conventions of the UN. We call all stakeholders to support accountable mining and eco-activists protesting against the illegal exploitation of mineral deposits in the areas under the temporary control of Russian peacekeepers. Because environmental activism should be inclusive and global to be efficient. This is key instrument for citizens to express their opinions about environmental protection in case of the illegal extraction of Kyzylbulag gold and Demirli copper-molybdenum deposits.

Prof.Dr.Vusal Gasimli, 

Executive Director of the Centre for Analysis of Economic Reforms and Communication of Azerbaijan