Business

Taliban awards contracts for 183 mining projects to local, foreign companies in one year

A mine worker in Baghlan, northern Afghanistan.

KABUL, Afghanistan — Taliban has signed contracts for 183 mining projects, including 13 major ones, with domestic and foreign companies over the past year, as it increasingly taps into Afghanistan’s vast natural resources to boost its revenues.

The deals represent a significant effort by the Taliban to capitalize on Afghanistan’s mineral wealth since the group seized control of the country in 2021.

The Taliban-run Ministry of Mines and Petroleum announced that it has signed contracts for 167 small mining projects, with a total value of $145 million.

Additionally, contracts for larger mining projects are projected to generate over $8 billion in investments, the ministry said.

Among the most notable projects under consideration are Afghanistan’s lithium reserves, a critical resource in global battery production.

“A total of 167 contracts for small mines have been signed, with investments ranging from 8 to 10 billion Afghanis.

Investments in major mines are projected to reach $8 billion, to be implemented in phases,” said Homayoun Afghan, spokesperson for the Taliban’s Ministry of Mines and Petroleum.

Key projects include the Amu Darya oil field, cement plants in Herat, Kandahar, and Parwan, the Ghorian iron mine, the Ghor lead mine, and the Takhar gold mine. Contracts for 13 major mines have already been awarded to a mix of domestic and foreign companies.

The most significant agreements include:

  • Ghoryan Iron Mine: Contracted with companies from Turkey, the United Kingdom, and Iran, in partnership with Afghan firms, with an investment of $4.8 billion.
  • Jabal Siraj Cement Project: A Qatar-Afghan joint venture with an investment of $220 million.
  • Ghor Lead Mine: Contracted to Afghan Invest, an Afghan company, with an investment of $537 million.
  • Takhar Gold Mine: Contracted with a Chinese company, with an investment of $310 million.
  • Second Aynak Copper Mine (Logar Province): Another Chinese-led project, valued at $411 million.
  • Amu Darya Oil Field: Contracted with a Chinese company, involving $150 million in investment.

In particular, Chinese companies have secured the bulk of contracts for Afghanistan’s most valuable mines, a trend that highlights China’s growing economic influence in the country. Over the past 18 months, the Taliban has reported revenues of 15 billion Afghanis from the mining sector alone.

The Taliban-run Ministry of Mines and Petroleum has also signaled its intention to grant contracts for Afghanistan’s lithium mines at a later stage, with Homayoun Afghan stating that discussions will occur “in due time” and contracts will be awarded under “suitable conditions.”

Despite the Taliban’s ambitious plans for Afghanistan’s mining sector, the regime has faced criticism from citizens and human rights advocates. Some locals argue that while the Taliban profits from the country’s natural resources, ordinary Afghans see little benefit.

“For many years, our mines have been misused by the Taliban and foreign companies, especially Chinese firms,” said Khalida, a Kabul resident who spoke under a pseudonym. “Yet not a single Afghani has been provided to the local population, nor have any public welfare projects been supported. We need jobs and infrastructure in our communities.”

According to the Taliban, oil extraction is underway at 20 locations in the Amu Darya oil field, the largest in the country. Officials report that approximately 1,300 tons of crude oil have been extracted from these sites to date. However, the Taliban has yet to disclose how the revenues from the country’s mining sector are being allocated or spent.

As Afghanistan faces ongoing humanitarian and economic challenges, concerns persist that the wealth generated from its resources is being monopolized by the Taliban, while the broader population struggles with poverty and lack of access to basic services.