Contracts for 53 mines worth $7 billion signed, says Ministry

KABUL (TOLOnews): Mining agreements for 53 mines worth $7 billion this year have been signed with domestic and foreign companies. officials said.

According to officials in the Ministry of Mines and Petroleum, memorandum of understandings have been signed in the field of mineral extraction for iron, lead and precious stones.

“A total of nine large-scale mines have been contracted and 44 small-scale mines. “Large mines are left to domestic and foreign companies and small mines to domestic companies only,” said Hamayun Afghan, the spokesman of the ministry.

Afghan emphasized that the processing of raw materials in the country is a condition laid down by the Ministry of Mines and Petroleum for all contracts. “In no way will the raw materials be exported from the country for processing,” he said.

On the other hand, the Chamber of Commerce and Investment said that until Afghanistan becomes self-sufficient, 100% processing will not be possible in the country.

“We are trying to extract our mines in such a way that the process takes place in Afghanistan, but by the time we get to the process, we have to have 50 percent of the process here and then go abroad,” said Yuunus Momand, First Vice President of the Chamber of Commerce and Investment. Some experts insist that mining should be done in a standard way. “It is better that a commission be established in this sector and at the head of the commission there should be professional people who are under the control of the Islamic Emirate,” said Maiwand Samadi, an economic analyst.

“There are two important issues in mines: the first is how Afghanistan’s mines are extracted, whether they are extracted technically or professionally, or the former way that is non-technical, and non-technical ones whose losses were more than their benefits,” said Abdul Nasir Rashtia, another analyst. Most of the foreign companies that have won contracts for Afghan mines are from Iran, Turkey, China and the UK.