Mineral Resources of Afghanistan “ Drive for National & Regional Economic Development"

1. Mineral Resources of Afghanistan“Drive for National & Regional Economic Development" Ulaanbaatar, Mongolia October 20-21, 2011

2. Geology and Mineral Potential of Afghanistan Afghanistan has complex geology Northern part belongs to Eurasia The south is made up of accreted fragments of Gondwana Land including the Indian and African Plates Each block is separated by deep seated faults There were different geological activity in each zone which resulted in formation of very rich and diversified minerals Resources are estimated at USD 3 trillion Uzbekistan Turkmenistan Pakistan Iran Indian Plate

3. Potential for Metals • Iron ore deposits occur along a line from Afghan-Tajik border to Afghan-Iranian border, extends several hundred km. Resources are estimated at billions of tons of high quality iron containing a very attractive mixture of elements, Mo, Ti, and V. • Copper deposits (all three kinds such as sedimentary, porphyry and VMS) are significant in different parts of the country and the estimated resources are around 90 million tons. • Significant deposits of Gold (both placer and lode)

4. Lithium, Rear earths and Gemstones Li in salars Tin, Tungsten Tin, Tungsten Pegmatites Be, Li, Ta, Nb, Gems REE, Nb in carbonatites

5. Oil and Gas Resources • Three proven basins • Afghan-Tajik Basin • Amu Darya Basin • Herat Basin • Two other potential basins • Katawaz Basin • Helmand Basin • Most of these basins are filled with several km of sediments, an ideal geological setting for hydrocarbon generation Afghan Tajik

6. Hydrocarbons Assessments • Recent estimates of the oil resources have increased by more than 40 times and that of the natural gas resources by three times than what the Soviet data had indicated • Undiscovered gas reserves are estimated at 15.7 trillion cf • Undiscovered oil reserves are estimated at 3.56 bbls • Undiscovered liquid gas condensate reserves are estimated at 1.33 billion barrels

7. Large Mining Projects Require • Railroad and highways for export of ore, ore concentrate or final metal products (copper, steel, construction materials, and import of machinery and equipment) • Access roads • Power supply (hydro, coal fired, or gas fired) • Water supply (for industrial and domestic needs) • Community development projects: clinics, schools, local transportation and drinking water supply, etc • Skilled labour force • Involving the communities

8. Minerals key driver for sustaining the economic growth • Revenues for financial independence of the country (USD 1.5 billion annually by 2016 and USD 3.7 billion annually by 2024) • Significant contribution to the GDP / National economy (USD 5 billion by 2016 and USD 18 billion by 2024) • A major source of employment (to create 165,000 jobs by 2016 and 500,000 by 2024) • Accelerate the development of infrastructure investment of (USD 13 billion by 2016 and USD 15 billion by 2024) • Gradual decreasing reliance on international aid

9. Mineral Fund / policy • Single account for all the revenue from the minerals such as royalties and taxes • Allocation of 50% for infrastructure, 20% for education particularly higher and vocational and the remaining 30% for other aspects of investment in stability and human development including social & community development • A clear mechanism for supervision of these resources and a transparent governance regime • Will fully comply with EITI by August 2012

10. Challenges: • Security and perception • Land-locked country • Inadequate infrastructure (existing) • Inadequate human capacity

11. Opportunities Very rich and diversified mineral resources (Untapped resources) Country at the centre of Global attention Aggressive reforms and restructuring of the regulatory institution (Ministry of Mines) A comprehensive fiscal and economic framework for the development of mineral resources New mineral fund policy Emerging and big markets in the region

12. Kunduz Production, Trade & Mining National & Regional Resource Corridors The integration of infrastructure with the major mining & hydrocarbons project Mazar-i-Sharif Trade, Production & Mining Existing Railroads Shiberghan Gas Herat Production, Trade and Mining Planned Railroads (Asian Development Bank) Balkhab Copper Mine PlannedRailroads (Aynak) Jalalabad Production, Trade and Mining Logar – Kabul Aynak Copper Bamyan Hajigak Iron Ore Katawaz Mining Railroad that is going to be studied Feasibility Study is Required Kandahar Production & Trade

13. REGIONAL RAIL NETWORKS 13

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15. Why Invest in Afghanistan? • Afghanistan is the link between Central Asia and South Asia • Potential growing market • GDP growth in excess of 10% over the last five years • Expected to grow 8-9% in future years • Close to the largest and fastest growing markets in the world • Comprehensive infrastructure development programme focused on resource corridors • ‘Mining Protection Unit’ established to guarantee security of mining projects

16. Ministry’s Vision Ministry’s Mission: To be an enabler of the sector’s development and steward of all mineral resources through the implementation of international best practice policies, regulations and procedures to encourage environmentally and socially acceptable private investment. Generate Revenue Attract Private Investment Ensure security of supply Efficient Administration Create Jobs

17. Ministry’s Business Plan 2010 - 2015

18. Thank You