Business
Minerals have become integral to conflict in Afghanistan: UNDP
UNDP Afghanistan has found that decades of mining without a clear vision has done little to reduce poverty but has instead helped insurgent groups fund their wars, triggered local conflicts and harmed the environment.
Published on Tuesday, the UNDP’s National Human Development Report 2020 on minerals extraction in Afghanistan states that the country’s minerals extraction is poorly regulated, often illegal, and in many parts of the country is controlled by political elites, and by insurgents.
Based on extensive fieldwork, consultations and discussion, UNDP also found that illegal mining is a complex phenomenon, contributing to insecurity, corruption, human rights violations and conflict that affects the lives of citizens.
Afghanistan is richly endowed with mineral and hydrocarbon resources, which include base and precious metals, precious and semi-precious stones, rare earth elements, mineral rocks and industrial minerals, and energy resources.
At present these contribute little to the economy or society, mainly because they remain in the ground, but also because most of the mining is informal and illegal.
“If the country is to unlock the potential of its mineral wealth, the government and other stakeholders will need to strengthen the management of resources and ensure peace and security,” UNDP stated.
“Unregulated mining feeds and is fed by conflict. It has become the magnet of corrupt individuals and networks, and some mining businesses are implicated in serious human rights violations, often acting with impunity,” read the report.
“In Afghanistan, there is an urgent need to improve governance, tackle corruption and put an end to illegal extraction and trade of minerals,” said Abdallah Al Dardari, UNDP Resident Representative for Afghanistan.
“Large-scale mineral, oil and gas projects can be instrumental for financing development, but it will require stability and enhanced government capacity to get its due share from these projects and use them well for human development,” he added.
The report recommends that all partners implement programs demonstrating good practices, methods and technologies in mining.
Afghanistan’s Minister of Mines and Petroleum Haroon Chankhansuri meanwhile said: “I welcome the release of the report and look forward to our collaboration with UNDP and other partners on the opportunities explored by this report on the potential of economic growth through extractive industries.”
The minister added, “the recommendations on policy choices to ensure people benefit from and participate in extractive industries potential, and mitigating the risks associated with this type of development will be considered in the government’s plans for the sector.”
According to UNDP, the organization’s new programs, Afghanistan Sustainable Development Goals (A-SDGs) and Agenda 2030 is focused on transferring the war economy into a peace economy, and that the extractive sector is a key area for revenue generation and economic growth.
In 2010 the US Task Force for Business and Stability Operations estimated the monetary value of Afghanistan’s mineral resources at nearly $1 trillion.
But, according to the UNDP, since the 1980s, many mines have come to be controlled by networks of former jihadis who, after the defeat of the Taliban, have at different times acquired positions of influence within the government.
These networks often operate with impunity – openly and audaciously smuggling mineral resources out of the country, read the report.
“More recently, with the decline in international aid, and the reduced demand for new buildings, many well-connected construction companies have moved into the mining sector.”
Mining financing conflict
The report also stated mining has been financing conflict and that the control of minerals extraction by insurgent groups has meant that they have been financing and fuelling conflict while undermining the legitimacy of the Afghan government and further spreading corruption and violence.
“The group with the most extensive reach is the Taliban, but since 2015, other groups under the name of Islamic State of Khorasan (IS-K/Daesh) have joined the competition for minerals,” read the report.
For the Taliban, the extractive industry is the second-largest revenue stream after narcotics.
It collects taxes and ‘protection money’ from miners but more recently, the IS-K started tapping the mining sector when financial support waned from the central ISIS branch, the report stated.
One example cited was with talc-rich Nangarhar province where government, Taliban and IS-K actively contested the talc mining areas.
“For a mining company, the benefits of paying taxes to the government are limited, while the risks of not paying taxes to insurgents are enormous,” the UNDP stated adding that IS-K, in particular, is known for brutal sanctions for non-compliance.
“In addition to these groups, local militias, warlords, and occasionally security forces, are also levying taxes on minerals or are involved in illegal mineral extraction – directly or through associates and family members,” the report stated.
The UNDP stated that in areas controlled by insurgents, lucrative large-scale mining sites operate on an industrial scale then openly transport bulk minerals on large trucks along major roads and across the border to Pakistan.
“Governance of extraction is weakened by extensive corruption. Even where mining companies operate legally, there can be corruption in the issue of contracts,” the report stated.
According to UNDP, violations of human rights in regard to minerals extraction was also a problem.
“There have been documented cases of human rights violations by mining companies which are protected by networks of power brokers.”
Afghanistan is one of the world’s poorest countries – held back by decades of conflict but with prospects for peace, there will be greater opportunities for investing in human development.
The UNDP stated however that this will require taking full advantage of the country’s mineral resources.
“But it will require a determined and concerted effort to reform the country’s policies and institutions governing these resources. The ultimate objective of minerals extraction in Afghanistan should be sustainable human development and improvements in people’s well-being.”
CLICK HERE for the full report
Business
Afghanistan and Uzbekistan sign 20 trade MoUs worth $267 million
Afghanistan’s Ministry of Industry and Commerce says 20 trade memorandums of understanding (MoUs) worth $267 million have been signed following business meetings between Afghan traders and private-sector representatives and officials from Uzbekistan’s Kashkadarya province.
The agreements were signed on the sidelines of a business networking conference between Afghan private-sector representatives and Kashkadarya in Kabul. Officials from Afghanistan’s Ministry of Industry and Commerce, representatives of Kashkadarya province, Uzbekistan’s ambassador to Kabul, and private-sector representatives from both countries attended the conference.
Ahmadullah Zahid, Deputy Minister of Industry and Commerce, said economic relations and trade between Afghanistan and Uzbekistan have increased following visits by delegations from both sides.
He stressed the need to simplify trade and transit procedures and remove existing obstacles. He also said Afghanistan is ready to discuss the transit of its export goods through Uzbekistan.
Shahret Muradov, Deputy Governor of Kashkadarya, said the province is ready to expand trade and industrial cooperation with Afghanistan and host Afghan delegations and traders.
The agreements cover sectors including food products, clothing, construction, livestock, electronic equipment, and furniture.
Business
Afghanistan transports more than 704,000 tonnes of goods by rail in August
The Hairatan railway route handled the largest share, with 464,767 tonnes, followed by Khaf–Herat with 137,687 tonnes, Torghundi with 62,015 tonnes, and Aqina with 39,831 tonnes.
Afghanistan transported more than 704,000 metric tonnes of goods through its railway network in August 2026, the Ministry of Public Works said.
The ministry said 704,300 metric tonnes of petroleum products, non-petroleum goods and other materials were imported and exported through four major railway routes during the month.
The Hairatan railway route handled the largest share, with 464,767 tonnes, followed by Khaf–Herat with 137,687 tonnes, Torghundi with 62,015 tonnes, and Aqina with 39,831 tonnes.
The ministry said the railway network also supported Afghan exports during the month, including 3,751 tonnes of carbonated beverages shipped abroad.
According to the ministry, expanding rail transportation and exports could contribute to job creation, higher national revenues and greater economic stability and self-sufficiency.
The ministry added that the Islamic Emirate is working to improve trade conditions and expand transportation facilities for Afghan traders.
Business
TAPI pipeline nears first gas sales in Afghanistan
Herat Governor Mawlavi Islam Jar recently said construction of the TAPI pipeline in the province is expected to be completed within two months.
The Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline is moving closer to its first commercial gas sales in Afghanistan after years of delays, with Herat expected to become the first Afghan market served by the project.
According to the Times of Central Asia, Turkmenistan plans to supply gas to Herat through the TAPI pipeline, while the timeline for extending the project to Pakistan and India remains uncertain.
The report says Turkmengaz and Afghan Gas signed a memorandum on August 10 covering the purchase of gas through TAPI. However, the agreement does not yet specify the price, supply volume or exact date for the start of commercial deliveries.
Afghan and Turkmen officials are also working to develop a gas distribution network in Herat to supply industrial facilities, power plants and households.
Meanwhile, Herat Governor Mawlavi Islam Jar recently said construction of the TAPI pipeline in the province is expected to be completed within two months.
According to the governor, Turkmen officials have completed their work on the project and will hand it over to Herat authorities once the remaining process is finalized.
Jar has also urged residents and factory owners in Herat’s industrial park to make the necessary preparations for the start of gas distribution and pipeline connections.
The TAPI project is designed to transport Turkmenistan’s natural gas through Afghanistan and Pakistan to India, with a planned annual capacity of 33 billion cubic meters.
-
World4 days agoUS hits Egyptian bank branches with Iran sanctions as war marks six months
-
Latest News4 days agoTajikistan to receive military equipment to strengthen Afghan border
-
Business4 days agoTAPI pipeline nears first gas sales in Afghanistan
-
World2 days agoTrump floats idea of renaming Atlantic or Pacific Ocean
-
Business3 days agoAfghanistan transports more than 704,000 tonnes of goods by rail in August
-
Latest News3 days agoUS Congress extends Afghanistan War Commission’s mandate by one year
-
Latest News3 days agoUS chose to stay in Afghanistan instead of eliminating terrorism, says Russian FM
-
Climate Change2 days agoNepal flood rescue mission enters critical phase as thousands remain missing
