Mining in Afghanistan --- 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 1400 mineral fields, containing barite, chromite, coal, copper, gold, iron ore, lead, natural gas, petroleum, precious and semi-precious stones, salt, sulfur, talc, zinc among many other minerals. Gemstones include high-quality emerald, lapis lazuli, red garnet and ruby. It is believed that among other things the country holds $3 trillion in untapped mineral deposits.[1] In December 2013, President Karzai claimed the mineral deposits are actually worth $30 trillion.[2] --- There are six lapis mines in Afghanistan, the largest being located in Badakhshan province. There are around 12 copper mines in Afghanistan, including the Aynak copper deposit located in Logar province.[3] Afghanistan's significance from an energy standpoint stems from its geographical position as a potential transit route for oil and natural gas exports from Central Asia to the Arabian Sea. This potential includes the construction of the Trans-Afghanistan Pipeline gas pipeline.[4] The first Afghan oil production began in October 2012.[1] --- It is estimated that forty million years ago the tectonic plates of India-Europe, Asia and Africa collided in a massive upheaval. This upheaval created the region of towering mountains that now includes Afghanistan. This diverse geological foundation has resulted in a significant mineral heritage with over 1,400 mineral occurrences recorded to date, including gold, copper, lithium, uranium, iron ore, cobalt, natural gas and oil.[5] Afghanistan's resources could make it one of the richest mining regions in the world.[6] -- Afghanistan has large untapped energy and mineral resources, which have great potential to contribute to the country's economic development and growth. The major mineral resources include chromium, copper, gold, iron ore, lead and zinc, lithium, marble, precious and semiprecious stones, sulfur and talc among many other minerals. The energy resources consist of natural gas and petroleum. The government was working to introduce new mineral and hydrocarbon laws that would meet international standards of governance. --- 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.[7] 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. ---- History -- The last mining boom in Afghanistan was over 2,000 years ago in the era of Alexander the Great, when gold, silver and precious stones were routinely mined. Geologists have known of the extent of the mineral wealth for over a century, as a result of surveys done by the British and Russians. An American company was offered a mining concession over the entire country in the 1930s but turned it down. Despite this historical knowledge, global interest was only really boosted in 2010 when the Pentagon commissioned a report from the US Geological Survey (USGS). ---- Geology -- Afghanistan lies on the Tethyan Eurasian mineral belt, which starts in Turkey and runs through Iran to Asia as far as Indonesia. There are other mineral belts in Afghanistan, formed through the violent collisions of tectonic plates tens of millions of years ago, which also created the 25,000 ft mountains in the north-east of the country. ---- Legal framework -- A new mining law was passed in 2006 and as of 2006 regulations were being developed to provide the framework for more formal exploration for and mining of minerals. The process of applying for mineral rights was also being revised as of 2006. All minerals located on or under the surface are the exclusive property of the Government, except for hydrocarbons and water, which are regulated under separate laws. The principal role of the Government with respect to minerals is to promote the efficient development of the mineral industry by the private sector. The Ministry of Mines and Industries is responsible for the administration and implementation of the Mining Law. The Law provides investment security to the holder of a mineral right. The Government cannot expropriate mineral rights without adequate compensation in accordance with international norms. The Law also gives the mineral royalty rates, which range from 5% of gross revenue for industrial minerals to up to 10% for gemstones. Other changes in Government policy in 2006 included the legalization of the gemstone trade, Government control of the gemstone industry, and encouragement of investment in mining.[19] ---- Mining locations, -- Read More, From Wikipedia, http://en.wikipedia.org/wiki/Mining_in_Afghanistan