Contracts worth over $6.5 billion signed to kick-start mining sector

Contracts worth $6.557 billion for seven large-scale mines were signed on Thursday, August 31, between the Ministry of Mines and Petroleum and various companies.

These contracts were signed in the presence of the Islamic Emirate of Afghansitan’s Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar Akhund.

The contracts involved four sections of the major iron ore mine in Ghorian district in Herat Province.

The company that secured the contract for the first section was Watan Darakhshan Company and its subsidiary Azaran Industrial Structures Company.

Sahil Middle East Mining & Logistics Company and its Afghan and Turkish partners, Dara-e-Noor and Epcol respectively, were awarded the contract for the second section.

Shamsh, an Afghan company, along with British companies GBM and AD Resources, were awarded the contract for the third block.

The fourth contract went to Bakhtar Steel Company and its Iranian partners Ahya Sepahan and Parsian.

In addition, the contract for one section of the lead and zinc mine in Tulak district of Ghor province was awarded to Afghan Invest Company.

The contract to excavate gold from the Samti mine in Chah Ab district of Takhar province was awarded to the China-Afghanistan Company with Zarawar Afghanistan Private Company being the shareholder; and a contract for the second Mes Aynak mine in Logar province was awarded to Turia Private Company.

A total of $6.557 billion will be invested in these seven projects, which will collectively create thousands of jobs.

This comes just days after the acting minister of mines and petroleum Shahabuddin Delawar met with Wang Jiarui, the general director of China Metallurgical Group Corporation (MCC), which has the contract to mine copper at Mes Aynak.

Delawar and Wang discussed operational details as well as issues around the archaeological site, which still contains buried artifacts.

Delawar said at the meeting that the Aynak copper mine project was a key priority for the IEA and that their main goal is to get the mining sector up and running.

“The Islamic Emirate of Afghanistan is committed to putting this project into operation as soon as possible, so that its practical work begins and job opportunities are created for the people,” he said.