India Weighs Mining Prospects in Afghanistan Amid Challenges

Afghanistan offers its dormant mining sites to India, aiming for economic ties and job creation; however, cautious optimism from India's ASSOCHAM highlights the need for geological surveys. Amid discussions, both nations emphasize expanding trade and improving bilateral relations amid Afghanistan's claimed improving conditions.

Afghanistan has extended an invitation to India, offering exploration rights to its inactive mining sites as part of a strategy to bolster economic relations and create local employment opportunities. However, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has reacted cautiously, pointing to the inherent complexities in the mining sector that demand thorough geological assessments before proceeding with investments.

During a high-level meeting, ASSOCHAM Secretary General Manish Singhal informed the media about Afghanistan's vast mining potential, highlighting over 1,400 mineral fields, which include gold, lithium, and precious stones like high-quality emeralds. Despite these resources, infrastructure deficiencies, and security concerns have kept many sites idle, with significant untapped wealth estimated at USD 1 trillion, according to a Pentagon and US Geological Survey study.

The Afghan delegation, led by Industry and Commerce Minister Alhaj Nooruddin Azizi, was keen to emphasize improving security and infrastructure, encouraging Indian companies to engage more actively in transnational trade. Proposals were made for enhancing local production capabilities, suggesting Indian enterprises could contribute value-added processes, such as packaging and manufacturing of goods imported from Afghanistan. Both nations aspire to streamline banking operations and facilitate smoother business travel visa processes to boost bilateral trade, currently valued at around USD 1 billion.

(With inputs from agencies.)