Mineral Resources of Afghanistan


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"Drive for National & Regional Economic Development" - Islamic Republic of Afghanistan - Ministry of Mines

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Mineral Resources of Afghanistan

  1. 1. Mineral Resources of Afghanistan “Drive for National & Regional Economic Development" Ulaanbaatar, Mongolia October 20-21, 2011
  2. 2. GEOLOGY AND MINERAL POTENTIAL OFAFGHANISTAN • Afghanistan has complex geology • Northern part belongs to Eurasia • The south is made up of accreted fragments of Gondwana Land including the Indian and African Plates • Each block is separated by deep seated faults • There were different geological activity in each zone which Indian Plate resulted in formation of very rich and diversified minerals • Resources are estimated at USD 3 trillion 2
  3. 3. POTENTIAL FOR METALS• Iron ore deposits occur along a line from Afghan-Tajik border to Afghan-Iranian border, extends several hundred km. Resources are estimated at billions of tons of high quality iron containing a very attractive mixture of elements, Mo, Ti, and V.• Copper deposits (all three kinds such as sedimentary, porphyry and VMS) are significant in different parts of the country and the estimated resources are around 90 million tons.• Significant deposits of Gold (both placer and lode) 3
  4. 4. LITHIUM, REAR EARTHS AND GEMSTONES Tin, Tungsten Pegmatites Be, Li, Ta, Nb, Gems REE, Nb in carbonatites 4
  5. 5. OIL AND GAS RESOURCES• Three proven basins – Afghan-Tajik Basin – Amu Darya Basin Afghan Tajik – Herat Basin• Two other potential basins – Katawaz Basin – Helmand Basin• Most of these basins are filled with several km of sediments, an ideal geological setting for hydrocarbon generation 5
  6. 6. HYDROCARBONS ASSESSMENTS• Recent estimates of the oil resources have increased by more than 40 42 39 times and that of the natural gas 36 resources by three times than what 33 30 the Soviet data had indicated 27• Undiscovered gas reserves are 24 21 Gas estimated at 15.7 trillion cf 18 Oil• Undiscovered oil reserves are 15 12 estimated at 3.56 bbls 9 6• Undiscovered liquid gas condensate 3 reserves are estimated at 1.33 billion 0 Gas Oil barrels 6
  7. 7. LARGE MINING PROJECTS REQUIRE• Railroad and highways for export of ore, ore concentrate or final metal products (copper, steel, construction materials, and import of machinery and equipment)• Access roads• Power supply (hydro, coal fired, or gas fired)• Water supply (for industrial and domestic needs)• Community development projects: clinics, schools, local transportation and drinking water supply, etc• Skilled labour force• Involving the communities 7
  8. 8. MINERALS KEY DRIVER FOR SUSTAINING THE ECONOMIC GROWTH• Revenues for financial independence of the country (USD 1.5 billion annually by 2016 and USD 3.7 billion annually by 2024)• Significant contribution to the GDP / National economy (USD 5 billion by 2016 and USD 18 billion by 2024)• A major source of employment (to create 165,000 jobs by 2016 and 500,000 by 2024)• Accelerate the development of infrastructure investment of (USD 13 billion by 2016 and USD 15 billion by 2024)• Gradual decreasing reliance on international aid 8
  9. 9. MINERAL FUND / POLICY• Single account for all the revenue from the minerals such as royalties and taxes• Allocation of 50% for infrastructure, 20% for education particularly higher and vocational and the remaining 30% for other aspects of investment in stability and human development including social & community development• A clear mechanism for supervision of these resources and a transparent governance regime• Will fully comply with EITI by August 2012 9
  10. 10. CHALLENGES:• Security and perception• Land-locked country• Inadequate infrastructure (existing)• Inadequate human capacity 10
  11. 11. OPPORTUNITIES• Very rich and diversified mineral resources (Untapped resources)• Country at the centre of Global attention• Aggressive reforms and restructuring of the regulatory institution (Ministry of Mines)• A comprehensive fiscal and economic framework for the development of mineral resources• New mineral fund policy 11• Emerging and big markets in the region
  12. 12. KunduzNational & Regional Resource Corridors Mazar-i-Sharif Production,The integration of infrastructure with the major Trade & Trade, Production & Miningmining & hydrocarbons project Mining Existing Shiberghan Gas Railroads Herat Production, Trade and Mining Planned Railroads Balkhab Copper Mine (Asian Development Bank) Planned Railroads (Aynak) Jalalabad Production, Trade and Mining Bamyan Logar – Kabul Hajigak Aynak Copper Iron Ore Katawaz Mining Railroad that is going to be Feasibility Study is Kandahar studied Required Production & Trade 12
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  15. 15. WHY INVEST IN AFGHANISTAN?• Afghanistan is the link between Central Asia and South Asia• Potential growing market• GDP growth in excess of 10% over the last five years• Expected to grow 8-9% in future years• Close to the largest and fastest growing markets in the world• Comprehensive infrastructure development programme focused on resource corridors• ‘Mining Protection Unit’ established to guarantee security of mining projects 15
  16. 16. MINISTRY’S VISIONMinistry’s Mission:To be an enabler of the Generate Revenuesector’sdevelopment and steward ofall Attract Private Investmentmineral resources throughtheimplementation of Ensure security of supplyinternational bestpractice policies, regulations Efficient Administrationandprocedures to encourageenvironmentally and socially Create Jobsacceptable privateinvestment. 16
  17. 17. MINISTRY’S BUSINESS PLAN 2010 - 2015 17
  18. 18. THANK YOU 18