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Library The Afghanistan Mining Sector as a Driver of Sustainable Growth : Benefits and Opportunities for Large-Scale Mining

The Afghanistan Mining Sector as a Driver of Sustainable Growth : Benefits and Opportunities for Large-Scale Mining

The Afghanistan Mining Sector as a Driver of Sustainable Growth : Benefits and Opportunities for Large-Scale Mining

Resource information

Date of publication
February 2013
Resource Language
ISBN / Resource ID
oai:openknowledge.worldbank.org:10986/12370

This study attempts to quantify the
benefits that could be obtained for the country of
Afghanistan from the developments of the Aynak copper and
Hajigak iron ore deposits and to discuss policies and
programs-based on the experience of other countries-that
will tend to maximize the benefits from these and other
mines. In this study, the potential economic benefits to
Afghanistan of its mining sector will be analyzed, focusing
on the Aynak copper and Hajigak iron ore deposits. After an
overview of the Afghan mineral industry and global trends in
mining, a quantitative analysis will be made of the economic
contribution of the development of these deposits and
related infrastructure for income and employment in
Afghanistan. Various scenarios will be presented as well as
sensitivity analysis of key parameters. The analysis will
focus on income, fiscal revenues, employment, sidestream
linkages (sourcing), and the multiplier effects of
expenditure by both the government and consumers. In the
Afghanistan context, the mining sector is poised to be an
important source of fiscal revenues, but it is likely just
as important as an industry that can kickstart the
industrialization process of the country and lead to broadly
based inclusive growth. However, if the social and
environmental costs of the mining operations are not managed
properly, these benefits will not be sustainable in the long-term.

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