Taliban dole out $6.5 billion mining contracts to companies having ties with China, Turkey, Iran

The Taliban government has signed mining contracts worth US$6.5 billion, pegged to one of the biggest deals since it seized power in Afghanistan two years ago.

The mining contracts, seven in total, have been given to local companies, many of which have foreign partners in countries including China, Iran, and Turkey, reports AP news agency.

The mining of iron ore, lead, zinc, and gold will take place in four provinces: Herat, Ghor, Logar, and Takhar.

Logar province is believed to hold the world’s largest copper deposit.

In a statement, Deputy Prime Minister for Economic Affairs Abdul Ghani Baradar Akhund did not give any details of the investment but said that they would create thousands of jobs and significantly improve the economic situation of the country.

The announcement was made on Thursday as the Taliban marked the second anniversary of the withdrawal of all US-led NATO troops from the country after nearly 20 years of war.

China's reach deepens

Shahabuddin Dilawar, the Taliban minister of mines and petroleum said that a Chinese company has been awarded the contract to extract gold in Takhar province. He did not name the company that got the contract, but said that it would get 65 per cent share of the earnings over five years, VOA news outlet reported.

Earlier this year, a Chinese firm signed an oil extraction contract with the Taliban administration. Beijing lately has also shown interest in investing in lithium mining in Afghanistan.

The minister said that the other contracts involving in mining and processing iron ore in Herat province include Turkish, Iranian and British investments.

The Taliban believe that the extraction from this province would earn the government a 13 per cent share over 30 years.

"It will eventually turn Afghanistan into an exporter of iron," he said.

Cash-strapped Afghanistan

The cash-strapped South Asian country has been desperately looking for foreign investments as donations from foreign countries, the major source of revenue, completely stopped after the Taliban took power in August 2021.

The budget of the previous civilian government in Afghanistan was funded by the international community, accounting for about 80 per cent.

That money, now largely cut off, financed hospitals, schools, factories, and government ministries.

Afghanistan is endowed with vast and untapped mineral resources, and the Taliban administration has been looking to exploit it to fill up the state coffers.

(With inputs from agencies)

WATCH WION LIVE HERE