A special mining zone “Besqala Mining Valley” will be established

According to the report of the press service of the Ministry of Justice, Presidential Resolution “On measures to establish a special mining zone in the Republic of Karakalpakstan and organize its activities” (No. PP–143 dated April 17, 2026) has been adopted.

According to the resolution, the special mining zone “Besqala Mining Valley” is being created. The entire territory of the Republic of Karakalpakstan is designated as the zone.

Within the framework of the special zone, the following are permitted:

  • the use of electricity from the unified power system, all types of renewable energy sources, as well as electricity generated by hydrogen power plants for mining activities;
  • the sale of crypto-assets obtained through mining via national crypto exchanges or foreign platforms, including on the basis of direct contracts, and/or their exchange for other liquid crypto-assets.

A “Directorate of the Special Mining Zone ‘Besqala Mining Valley’” will be established.

The National Agency of Perspective Projects has been designated as the authorized body responsible for issuing permits for mining activities.

Applicants (legal entities) shall apply to the Directorate to obtain resident status in the special zone and a permit to conduct mining activities.

Income of residents derived from mining operations will be exempt from taxes and fees until January 1, 2035.