Afghanistan signs major mining deals in development push (Reuters U.S. – October 7, 2018)

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KABUL (Reuters) – Afghan officials have signed contracts for two major mining projects in northern Afghanistan, pushing ahead with plans to develop the country’s mineral reserves but drawing criticism over the involvement of a former minister in the project.

The deals were signed in Washington on Friday with mining and investment group Centar and its operating company Afghan Gold and Minerals Co to develop two sites in Badakhshan and Sar-e Pul provinces with potentially major gold and copper deposits.

The deals, reviving projects that have been stalled for years, follow a push by U.S. and Afghan authorities to develop mineral resources estimated to be worth some $1 trillion and seen as vital to building a functioning economy in Afghanistan after four decades of war.

“This investment will be transformative for Afghanistan,” Sadat Naderi, Chairman and President of Afghanistan Gold and Minerals, said in a statement. “Once we begin mining, the country will benefit from major investments in infrastructure as well as fiscal revenue from our projects,” he said.

Poor security, rampant corruption and a lack of roads, power and other infrastructure, have hampered development of Afghanistan’s mining sector. The few major deals which have been signed, including the vast Mes Aynak copper project signed with China’s state-run China Metallurgical Group Corp, have so far remained largely inactive.

For the rest of this article: https://www.reuters.com/article/us-afghanistan-mining/afghanistan-signs-major-mining-deals-in-development-push-idUSKCN1MH0FM

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