New Delhi [India], November 24 (ANI): Afghanistan has offered its long-idle mining sites to India for exploration as part of efforts to boost economic cooperation and create local employment. However, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has advised caution, emphasizing that mining is a complex sector requiring extensive geological assessment before any investments can move forward.
Speaking to reporters after a high-level meeting with an Afghan delegation, ASSOCHAM Secretary General Manish Singhal said Afghanistan had indicated that many of its mines, explored decades ago, are no longer operational. “They did mention that they have lots of mines in Afghanistan which were explored decades back, but now they are not functioning,” he said. “They said they will be happy to offer those mines to Indian mining companies.”
Afghanistan has more than 1,400 mineral fields containing resources such as barite, chromite, coal, copper, gold, iron ore, lead, natural gas, petroleum, lithium, talc, and zinc, among others. Its gemstone reserves include emeralds, lapis lazuli, red garnet, and rubies. A joint study by the Pentagon and the U.S. Geological Survey estimates Afghanistan holds nearly USD 1 trillion in untapped mineral wealth.
During the meeting, Afghan representatives also highlighted idle gold mines. Although Afghanistan possesses significant gold deposits, many sites remain undeveloped due to insufficient infrastructure, limited technical capacity, and longstanding security concerns. The current government, however, is seeking investment to revive these resources.
Explaining Afghanistan’s invitation to private Indian companies, Singhal said, “Indian mining companies can draw those minerals and bring them back to India, or they can export elsewhere from Afghanistan.” He added that despite the opportunities, mining requires comprehensive surveys that take considerable time to complete. “Mining is a bit more difficult because companies will have to start with geological surveys, which takes time,” he said.
The ASSOCHAM meeting took place during the visit of Afghanistan’s Minister of Industry and Commerce, Alhaj Nooruddin Azizi. Singhal said the minister arrived with a focused agenda to expand trade and investment ties. The Afghan side highlighted improving conditions in the country, noting better safety and mobility for people and goods.
Singhal reiterated India’s longstanding friendly relationship with Afghanistan. Sharing the sentiment conveyed by the Afghan delegation, he said, “I would rather buy things from India than other countries because India and Afghanistan have a strategic and warm relationship. Whatever happened in Afghanistan, India was continuously supporting the country.”
Trade dominated the discussions. India currently conducts about USD 1 billion in trade with Afghanistan, with 70 percent comprising imports and 30 percent exports. Singhal said there is considerable potential to expand Indian exports. Items Afghanistan imports from other countries — including small manufactured goods, food products such as rice, and pharmaceuticals — can be competitively sourced from India.
Afghanistan also requested Indian support to build local value addition capabilities. Singhal said, “Let’s say we are importing nuts, saffron, and hing from Afghanistan. Right now, it all comes to India and is packaged here. They requested us to build capacity there and teach local people how to do the packaging.”
He added that smooth banking channels are essential for trade expansion. “We need very smooth banking channels. Afghan banks and Indian banks that have interbank relationships need to rejuvenate them so trading companies, importers, and exporters don’t face problems,” he said.
Visa processes for business travel are also being streamlined. “We used to have lots of Afghan traders coming to India a few years back. So we invited them and said visas will be streamlined,” Singhal noted. (ANI)
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