Answer :
Mining in Afghanistan is controlled by the Ministry of Mines and Petroleum, which is headquartered in Kabul with regional offices in other parts of the country. Afghanistan has over 1,400 mineral fields,[1][2][3] containing barite, chromite, coal, copper, gold, iron ore, lead, natural gas, petroleum, precious and semi-precious stones, salt, sulfur, talc, and zinc, among many other minerals.[1][4] Gemstones include high-quality emerald, lapis lazuli, red garnet and ruby. According to a joint study by The Pentagon and the United States Geological Survey, Afghanistan has an estimated US$3 trillion[5] of untapped minerals.
There are six lapis mines in Afghanistan, the largest being located in Badakhshan province. There are around 12 copper mines in the country, including the Aynak copper deposit located in Logar province.[6] Afghanistan's significance from an energy standpoint stems from its geographical position as a transit route for oil, natural gas, and electricity exports from Central Asia to South Asia and the Arabian Sea. This potential includes the construction of the Trans-Afghanistan Pipeline gas pipeline.[7] The first Afghan oil production began in late 2012.[8]
The United States Geological Survey (USGS) and the British geological survey were doing resource estimation work in the country. Prior to that work, Afghanistan's exploration activity had been conducted by geologists from the Soviet Union who left good-quality geologic records that indicate significant mineral potential. Resource development would require improvements in the infrastructure and security in Afghanistan. The government had awarded contracts to develop the Aynak copper project and the Hajigak iron ore project; in addition, the government could offer tenders for new exploration, including exploration of copper at Balkhab, gold at Badakhshan, gemstones and lithium at nuristan, and oil and gas at sheberghan.
The Ministry of Mines drew up its first business reform plan in a bid to create a more accountable and transparent mining industry. Afghanistan joined the Extractive Industries Transparency Initiative as a candidate country. It was expected that after 5 years, the contribution of royalties from mineral production to the revenues of the government would be at least $1.2 billion per year, and that after 15 years, the contribution would increase to $3.5 billion per year.[11] Afghanistan has no local ownership requirements and its Constitution does not allow for nationalization. The 20% corporate tax rate was the lowest in the region.
Afghanistan's mining industry was at a primitive artisanal stage of development; the operations were all low scale and output was supplied to local and regional markets. The government considered development of the country's mineral resources to be a priority for economic growth, including development of the industrial mineral resources (such as gravel, sand, and limestone for cement) for use by the domestic construction industry. Investment in infrastructure and transportation projects for mining was a critical aspect of developing the mining industry.
The government completed Afghanistan's first railway with an investment of $170 million in 2010. The 76-kilometer (km) route link Mazar-i-Sharif to the extensive rail networks in Uzbekistan. The new route would allow Afghan exporters to transport minerals and other goods into Europe. China Metallurgical Group Corporation (MCC) is building a railroad to transport copper ore in Afghanistan from Logar to Kabul.
Owing to the lack of mineral production data reported by the miners, information about Afghanistan's mining activities was not readily available, but they appeared to be limited in scope. Production of Barite was estimated by the USGS to be about 2,000 metric tons; chromite, 6,000 tons; and natural gas liquids, 45,000 barrels. In the process of reconstruction and infrastructure development, output of construction minerals was estimated to have increased to meet the domestic requirements. Production of cement increased by 13% compared with that of 2009.