Afghanistan signs first gold, oil contracts with private companies

Afghan government officials have approved a multimillion-dollar contract to mine gold in the mountains in the north of the country. The deal is the first mining venture in Afghanistan backed by private investors from western countries, and is “an important step forward for Afghanistan's economic sovereignty”, said U.S. deputy under secretary of defense Paul Brinkley. About ten investors will bring an estimated US$ 50 million dollars in the Dushi gold prospect in Baghlan, 135 kilometers northwest of Kabul.

Meanwhile, the Afghan government has also granted its first private oil contract, a six-month deal to sell crude oil from the Angot field. It was signed with a local Afghan company. Production from the field is expected to reach 800 barrels a day. Geologists have known for decades about Afghanistan's vast deposits of iron, copper, cobalt, gold and other prized minerals, which could help developing the impoverished country.