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Iran plans to invest $5 billion in Afghanistan’s iron mines

Iranian media have reported that the country is investing $5 billion in Afghanistan’s iron mines.
Alireza Bikdeli, acting ambassador of Iran in Kabul, stated that Afghanistan’s rich mineral resources present an opportunity for cooperation between the two neighboring countries.
He added that this investment would enhance Iran’s position in global steel production.
Fars News Agency reported that, given Iran’s increasing need for raw materials in its mining industries, the investment is expected to yield up to sixfold returns.
Iran imports each ton of Afghan iron mine at a price of $100 and exports it as steel at a final price of $600.
According to the latest data from Afghanistan’s Ministry of Mines, Iran has invested $2.3 billion in the country’s mining sector, including iron, over the past several years.
Abdul Nasir Reshtia, the executive director of the Union of Iron Smelting Factories, said: “If the country’s mines are extracted in a technical and professional manner, and all processing and production stages are carried out domestically, we will witness significant economic effectiveness.”
Reports indicate that the Iran-Afghanistan cooperation agreement on iron ore mining is a five-year contract, expected to generate $1.2 billion in annual profit for Iran.
Over the past three years, Iran-Afghanistan relations have expanded, with bilateral trade reaching $4 billion annually.
Meanwhile, Iranian officials have granted their border provinces the authority to fully utilize all resources to enhance relations with Afghanistan’s border provinces, particularly in the economic and trade sectors.
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Turkmenistan, EU discuss regional security and Afghanistan

Turkmenistan’s Deputy Foreign Minister, Ahmet Gurbanov, and Paola Pampaloni, Director for Asia at the European External Action Service, discussed regional security concerns and the situation in Afghanistan, as they met for Human Rights Dialogue.
Turkmenistan highlighted its policy grounded in neutrality, respect for neighboring countries, and non-interference in domestic affairs. The country reaffirmed its commitment to initiatives focused on fostering peace and long-term development in Afghanistan, including delivering humanitarian assistance and backing peace efforts, The Caspian Post reported.
Key emphasis was placed on significant infrastructure projects, such as the Turkmenistan-Afghanistan railway and the development of new energy and transportation routes.
Both sides underscored the value of continued open political dialogue and expressed willingness to deepen collaboration on shared priorities.
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Afghanistan turns to Russia for some food supplies amid Iran-Israel war

Afghanistan is in discussions with Russia to import certain foodstuffs as the conflict between Israel and Iran, one of its largest trading partners, risked cutting off supplies, its agriculture minister told Reuters.
As relations between Russia and the Islamic Emirate have been improving, an Afghan delegation is visiting Russia’s main economic conference in St. Petersburg this week, meeting Russian agriculture officials.
“Afghanistan is definitely aiming for self-sufficiency in its agricultural products. However, we still rely on some food items that come from Iran, and if problems arise there, it will undoubtedly have its effects,” Ataullah Omari said on the sidelines of the conference.
Iran supplies Afghanistan with some dairy products, among other commodities, and there is widespread concern the week-old war between Israel and Iran could disrupt trade flows
Russia – the world’s largest wheat exporter – and Kazakhstan are the main suppliers of wheat and flour to Afghanistan. Russia is also supplying sugar and vegetable oil.
Omari said that the country is now seeking wheat rather than flour from Russia.
Afghanistan, the top buyer of Russian flour in 2024, increased its own wheat production by 10% last year to 4.83 million metric tons. The country’s total wheat consumption is estimated at 6.8 million metric tons a year.
“For the past four years, since the withdrawal of the Americans, we have been making efforts to provide our essential food supplies ourselves. The remaining amount, including flour and wheat, is supplied annually by Russia,” Omari said.
“We have requested that Russia send us wheat instead of flour. Additionally, the import of other products that come from Russia to our country annually is progressing well,” he added.
In April, Russia lifted its ban on the Islamic Emirate, which it had designated as a terrorist organisation for more than two decades, paving the way for Moscow to normalise ties with Afghanistan’s leadership.
Since 2022, Afghanistan has imported gas, oil, and wheat from Russia, marking the first major economic deal after the Islamic Emirate returned to power, facing international isolation following 20 years of war against U.S.-led forces.
Omari expressed concern about Afghan refugees living in Iran who could become victims of Israel’s attacks. The UN Refugee Agency (UNHCR) estimates that nearly 4.5 million Afghan nationals reside in Iran.
“Any kind of damage that occurs there is absolutely unsatisfactory for our nation and our people, especially for many of our refugees who live there and are our brothers,” he said.
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UK appoints Richard Lindsay as special envoy for Afghanistan

The United Kingdom has appointed Richard Lindsay as its special envoy for Afghanistan, marking a strategic shift in diplomatic engagement.
Lindsay will take up his appointment during June 2025.
He has been Deputy Director for Afghanistan and Pakistan at the British foreign ministry since 2022.
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