Digging into Afghanistan's Mining Industry

Mining is a small but growing industry in Afghanistan. Key minerals include iron ore, copper, gold, rare earth metals and lithium. There is potential for major expansion given the country's untapped reserves, but the sector faces problems with lack of infrastructure, technology and investment. The state-owned companies dominate mining currently. With improved policy frameworks to facilitate foreign investment, better transport links and modernized mining techniques, the industry can drive substantial economic growth.

Major gaps exist in terms of regulatory policies, adequate electricity/water access to mining sites, infrastructure to transport outputs, latest technology deployment and access to skilled labor. Large scale investments are required to realize the potential of mining to transform into an engine for GDP growth. Privatization of state owned firms, public-private partnerships in infrastructure development and government incentives for new exploration can help scale the sector.

Consulting firms like RFC can support mining companies and government agencies through a range of advisory services spanning strategic planning, industry analysis, benchmarking, feasibility studies, policy framework design, operational enhancement and change management. Our expertise in end-to-end mining project development, ESG frameworks, global best practices in sustainable mining, and linkages with technology providers, can assist stakeholders in overcoming barriers and taking the industry to the next level.