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Afghanistan cancels deals for two major mining projects in north

01 Dec 2019 1TV News

Afghan government has cancelled contracts for two major mining projects in north of the country.

The deals had been signed in the United States in October last year with mining and investment group Centar and its operating company Afghan Gold and Minerals Co to develop two sites in Badakhshan and Sar-e Pul provinces with potentially major gold and copper deposits.

Abdul Qadir Mutfi, a spokesman for Afghanistan’s Ministry of Mines and Petroleum, said that the companies failed to deliver on their financial commitment, despite being given three deadlines.

The contracts for copper project in Balkhab district of Sar-e Pul province and gold project in Badakhshan province would run for 30 years and involve investment of $78 million in the first three years.

The contracts had also been criticized by watchdogs for involvement of Sadat Mansoor Naderi, who served as urban development minister until June 2018. Naderi is the chairman of Afghan Gold and Minerals.

Naser Temori, a member of Integrity Watch Afghanistan, said that the two mines had been contracted with companies which had been facing legal and financial problems.

He added that insecurity was another reason why the companies could not begin work.

Original Link: http://www.1tvnews.af/en/news/afghanistan/40424-afghanistan-cancels-deals-for-two-major-mining-projects-in-north

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