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

1. Mineral Resources of Afghanistan
“Drive for National & Regional
Economic Development"
Ulaanbaatar, Mongolia October 20-21, 2011

2. GEOLOGY AND MINERAL POTENTIAL OF
AFGHANISTAN
• 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. 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. LITHIUM, REAR EARTHS AND GEMSTONES
Tin, Tungsten
Pegmatites
Be, Li, Ta, Nb, Gems
REE, Nb in carbonatites
4

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. 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. 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. 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. 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. CHALLENGES:
• Security and perception
• Land-locked country
• Inadequate infrastructure
(existing)
• Inadequate human capacity
10

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. Kunduz
National & Regional Resource Corridors Mazar-i-Sharif
Production,
The integration of infrastructure with the major Trade & Trade, Production & Mining
mining & 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

13. REGIONAL RAIL NETWORKS
13
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14. 14
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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. MINISTRY’S VISION
Ministry’s Mission:
To be an enabler of the Generate Revenue
sector’s
development and steward of
all Attract Private Investment
mineral resources through
the
implementation of Ensure security of supply
international best
practice policies, regulations
Efficient Administration
and
procedures to encourage
environmentally and socially Create Jobs
acceptable private
investment. 16

17. MINISTRY’S BUSINESS PLAN
2010 - 2015
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18. THANK YOU
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