Baku—Global law firm Dentons advised Anglo Asian Mining PLC on the amendment of its long-standing production sharing agreement (PSA) with the Government of Azerbaijan, to reflect its US$3 billion acquisition of new gold, copper and polymetallic contract areas in Azerbaijan. The amendments also served to bring the PSA’s provisions closer to international best practices in hard rock mining.

The obligations of the Government of Azerbaijan were guaranteed by a sovereign guarantee approved by the Cabinet of Ministers. 

A team from Dentons’ Baku office advised Azerbaijan International Mining Company on the deal. Partner Ulvia Zeynalova-Bockin led the team with support from senior partner James Hogan, counsel Bakhtiyar Mammadov, and junior associate Zeynab Yusibova.

“We are delighted to have had the opportunity to assist Anglo Asian in this strategic deal,” said Ulvia Zeynalova-Bockin. “The use of the PSA model is very widespread in the exploration and development of hydrocarbons, but it is not well-adapted for hard rock mining. Applying this contractual structure to a mining transaction, while balancing the needs demands of multiple stakeholder groups, was a very rewarding challenge.”

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