Australian Fortescue interested to invest in Afghanistan mining sector

An Australian iron ore company, Fortescue Metals Group Ltd., has held talks with President Ashraf Ghani on potential mining sector opportunities in Afghanistan, the Bloomberg reported.

According to the report, the company which is the fourth-biggest iron ore exporter in the world has struggled to accelerate the development of an estimated $1 trillion worth of mineral deposits.

President Ghani and the company’s chairman Andrew Forrest held an Aug. 6 video conference over a potential investment in iron ore and copper resources, and the billionaire miner is scheduled to visit Kabul in October for further talks, said Qadeer Khan Mutfi, a spokesman for Afghanistan’s Ministry of Mines and Petroleum quoted by Bloomberg.

The fourth-biggest iron ore exporter, “showed interest in our mining sector, saying Afghanistan is rich in having natural resources,” Mutfi said. “Companies like this definitely have financial abilities and the capacity to develop the country’s mining sector.”

“Fortescue has an active business development program,” the Perth-based company said in a statement, adding that its founder Forrest regularly engages with global leaders. The firm declined to comment on “speculation regarding specific assets or opportunities.”

According to reports, Afghanistan is rich in various types of valuable minerals such as copper, gold, talc, lithium, marble, uranium, and others, and the country’s vast mineral wealth is estimated to exceed one trillion dollars. 

Poor security, corruption, exploitation of minerals by warlords, and the lack of a proper legal framework have prevented any development in the country’s mining sector.