Overview
- The government has designated the whole Republic of Karakalpakstan as the Beshkala/Besqala Mining Valley and created rules that exempt miners from corporate, property, land, and VAT taxes through 2035 in return for a 1% monthly administrative fee.
- Only companies registered as legal entities in Karakalpakstan can qualify as zone residents, so foreign firms must set up local entities before they can apply for permits and licenses.
- All licensed mining operations must link to the ASKUE energy-monitoring system so the state can see real-time power use and must route proceeds from crypto sales through Uzbek bank accounts.
- The operational rules approved by the Justice Ministry allow miners to use grid power, renewable energy, and hydrogen generation and let them reuse excess heat for greenhouse farming to tie mining to local development.
- Officials have set the governance and financial framework but have not publicly reported any specific mining companies operating in the zone so the plan’s investment and employment outcomes remain untested and dependent on future applications and permits.