Afghanistan’s Mineral Resource Potential: A Boon or Bane?

Abstract

Afghanistan faces many problems including terrorism, instability, corruption, weak institutions, poor governance and lack of revenue sources. Keeping in view the recent political and economic history of the country, Afghanistan is likely to suffer from continued instability and chaos. The discovery of mineral resources worth nearly three trillion dollars has the potential to bring prosperity to the country and ultimately be a source of stability. However, any mishandling of these minerals can become a currency for greater civil war. On the other hand, if peace returns, these minerals can bring an economic revolution not only in Afghanistan, but the entire region as well. The United States Geology Survey and the Afghan Geological Survey discovered 24 „Areas of Interest (AoI)‟ where a variety of minerals, including rare earth elements (REE), industrial and energy minerals. While this mineral wealth can turn the country into an economic powerhouse, decades of war has made this an uphill task. An economically developed and politically peaceful Afghanistan offers the promise of supplementing Pakistan‟s steel industry, subject to good relations between the two neighbours. This paper provides a summary of some of important areas of interest, and highlights concerns about the extraction of minerals in Afghanistan during the post-2014 era