Afghanistan signs $20 million contract for salt mining in Herat

Afghanistan’s Ministry of Mines and Petroleum has signed a contract worth more than $20 million for the extraction and processing of salt from a mine in western Herat province.

The agreement was signed on Thursday by Mines and Petroleum Minister Hedayatullah Badri and the Red Gold Asia Mining and Processing Company for Block Two of the Namsar salt deposit in Ghoryan district.

According to the ministry, the project covers an area of 9.7 square kilometers and involves an investment of approximately $20.045 million. The contract has been awarded for a period of 15 years.

Speaking at the signing ceremony, Badri highlighted the economic importance of the project and said the company would pay a royalty of 1,500 afghanis (AFN) per ton of extracted salt. He stressed that the contractor must carry out all operations in accordance with Afghanistan’s mining laws, regulations and contractual commitments.

The ministry said the company has also committed to spending $930,000 on community development projects and social services in the area in addition to royalty payments.

Officials added that the company will be required to comply with environmental protection obligations outlined in the contract.

The project is expected to create employment opportunities for around 100 people and forms part of the government’s broader efforts to attract investment into Afghanistan’s mining sector and increase domestic resource development.