News and Views

Aynak Mine Project to Provide Employment, Mineral Wealth for Afghanistan

State-owned China Metallurgical Group (CMG) won a tender on November 20 to develop a mining project at Aynak, in Logar Province, which is thought to contain up to 13 million tons of copper. Approximately $3 billion will be invested in the project, the largest foreign investment in Afghanistan's history. Following the completion of construction, CMG will pay the Afghan government $400 million a year to operate the mine. The deposit was discovered in 1974 and surveyed by Soviet geologists in 1979, but was never developed.

"This is the biggest investment in Afghanistan's history and 10,000 people will be employed to work there," Afghan Mines Minister Ibrahim Adel said.

CMG plans to build a power station to run to the mine, find coal deposits to fuel the power station and construct a small town to house the mine workers. CMG will develop much needed infrastructure in order to improve transportation to and from the site. Bids were also solicited from Strikeforce, part of Russia's Basic Element Group, the London-based Kazakhmys Consortium, Hunter Dickinson of Canada and U.S. firm Phelps Dodge.

Afghanistan is in the process of developing its large coal, iron, gemstone, gas and oil deposits and hopes to attract more foreign mining firms in the future.

CLICK HERE to read the Government of Afghanistan’s official announcement