Marking a significant step in their efforts to attract foreign investment and boost the country’s economy, the Taliban have announced the signing of seven mining contracts worth USD 6.5 billion in Afghanistan, news agency Associated Press reported on Thursday (Aug 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.
