The Taliban have announced the signing of seven mining contracts worth USD 6.5 billion in Afghanistan, marking a significant step in their efforts to attract foreign investment and boost the country's economy, news agency Associated Press reported on Thursday (August 31). These agreements, the largest such round of deals since the group seized power two years ago, involve domestic firms collaborating with Chinese, Iranian, and Turkish entities. The contracts cover several provinces and involve the extraction and processing of minerals such as iron ore, lead, zinc, and gold, the report said.
According to the report, Deputy Prime Minister for Economic Affairs Abdul Ghani Baradar Akhund stated that the contracts have the potential to create jobs and improve Afghanistan's economic outlook. However, experts warn that these figures should not be interpreted as an immediate boon, as fully realised mining operations could take years to develop, it added.
According to Javed Noorani, an expert in Afghanistan's mining sector, while the country does have valuable mineral resources, capitalising on them requires meticulous planning, infrastructure, and a gradual approach. Due to the complexities of mining operations, progress will most likely begin with more accessible resources before expanding further.
"The Taliban knows Afghanistan has minerals, and this is cash, but it's not easy cash," Noorani told The Associated Press. "Mineral mining is an extremely complex operation. It necessitates a suitable framework, strategies, institutions, and infrastructure. You gradually open up the sector and begin with low-hanging fruit," he added.
According to the report, the exact details of the contracts and the companies involved remain largely unknown, with no official word from the Ministry of Mines and Petroleum. Following the cessation of significant funding from the international community following the Taliban's takeover, the move signals the Taliban's efforts to engage foreign investment and promote economic growth.
Previously, international assistance provided a significant portion of the Afghan government's budget, supporting vital sectors such as healthcare, education, manufacturing, and administration. With the Taliban in charge, they are focusing on Afghanistan's untapped mineral resources to generate revenue. Notably, Logar province is thought to contain one of the world's largest copper deposits, making it a potential asset in the country's economic revival.