Afghanistan’s Ministry of Mines and Petroleum has announced a major expansion in the country’s mining sector, signing 10 large-scale and 42 small-scale contracts with both domestic and international companies. These agreements, finalized by July 2025, aim to develop Afghanistan’s vast mineral resources, estimated to be worth over $1 trillion, including copper, gold, lithium, and rare earth elements.
Details of Licenses on Mining Sector
In a strong push for self-reliance, the ministry also issued 49 mineral processing licenses to Afghan firms. This move prioritizes local industry growth while ensuring economic benefits stay within the country. As part of the effort, 378 new mining sites were surveyed, and over 400 detailed geological maps were created to aid further exploration.
Progress on Mining Sector
Key accomplishments in the sector include achieving self-sufficiency in salt production, extending the TAPI gas pipeline by 13 kilometers, and advancing development at the Aynak copper mine in Logar province. In Sheberghan, five gas exploration contracts were signed—each well expected to yield 100,000 cubic meters of gas daily, all funded by the Islamic Emirate.
Effects of this Decision
The Ministry reports that more than 170,000 jobs have been created, directly and indirectly, as a result of these mining and energy projects. To maintain transparency, 18 contracts were cancelled due to violations, and one was suspended.
Looking ahead, the ministry has pledged to focus on local mineral processing, open domestic and international markets for precious stones, and ensure transparent bidding processes for future contracts—highlighting a commitment to sustainable, inclusive economic growth.
Published in SouthAsianDesk, July 25th, 2025
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