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

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.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2011-02
Subjects:	AIR, ALUMINUM, AMORTIZATION, ARTISANAL AND SMALL-SCALE MINING, ARTISANAL MINING, BALANCE OF PAYMENT, BALANCE OF PAYMENTS, BASE METALS, BENEFICIARIES, BENEFICIATION, BID, BIDS, BUDGETING, BUSINESS PLANNING, CADASTRE, CAPACITY BUILDING, CAPITAL SHORTAGES, COAL, COAL MINE, COMPARATIVE ADVANTAGE, CONSUMER GOODS, CONSUMERS, CONTRACT RENEGOTIATIONS, COPPER, COPPER MINE, COPPER MINES, CORPORATE INCOME TAXES, DECENTRALIZATION, DECISION MAKING, DEPOSIT, DEVELOPMENT BANK, DEVELOPMENT INSTITUTIONS, DIRECT INVESTMENT, DISCOUNT RATES, DISPOSABLE INCOME, DRILLING, DRIVERS, DRIVING, ECONOMIC BENEFITS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC RECOVERY, ECONOMIC SECTORS, ECONOMIC VALUE, ECONOMIES OF SCALE, EITI, EMPLOYMENT OPPORTUNITIES, ENVIRONMENTAL ASSESSMENT, ENVIRONMENTAL CONTAMINATION, ENVIRONMENTAL COSTS, ENVIRONMENTAL DAMAGE, ENVIRONMENTAL PROTECTION, ENVIRONMENTAL PROTECTION AGENCY, EXCHANGE RATE, EXPENDITURE, EXPENDITURE MANAGEMENT, EXPORTS, EXTERNALITY, EXTRACTIVE INDUSTRY PROJECTS, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN WORKERS, FREIGHT, FREIGHT COSTS, FUTURES, GAS, GDP, GEMSTONE MINING, GEMSTONES, GEOLOGICAL INFORMATION, GEOLOGICAL SURVEY, GEOLOGY, GOLD, GOLD MINE, GOLD MINES, GOVERNANCE ISSUES, GOVERNMENT CAPACITY, GOVERNMENT EXPENDITURE, GOVERNMENT EXPENDITURES, GOVERNMENT SPENDING, HIGH TAX, HOST GOVERNMENTS, HUMAN CAPITAL, HUMAN RESOURCES, INCOME TAX, INDUSTRIAL ECONOMY, INDUSTRIALIZATION, INFORMATION SYSTEMS, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE DEVELOPMENTS, INFRASTRUCTURE INVESTMENTS, INFRASTRUCTURE PROJECTS, INNOVATION, INVESTING, IRON, IRON ORE, JOB CREATION, KAOLIN, LAND USE, LAND USE PLANNING, LARGE MINING, LARGE-SCALE MINES, LARGE-SCALE MINING, LIMESTONE, LOCAL ECONOMY, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, LOCAL INFRASTRUCTURE, MACROECONOMIC STABILITY, MACROECONOMIC VARIABLES, MARGINAL DEPOSITS, MARGINAL PROPENSITY TO CONSUME, MEDIUM ENTERPRISE, METALS, MINE CLOSURE, MINE DEVELOPMENT, MINE EMPLOYEES, MINE EMPLOYMENT, MINE OPERATORS, MINE OWNER, MINE OWNERS, MINE SITE, MINE WORKERS, MINERAL DEPOSITS, MINERAL ECONOMICS, MINERAL INDUSTRY, MINERAL OCCURRENCES, MINERAL PRICES, MINERAL PRODUCTION, MINERAL RESOURCES, MINERAL RIGHTS, MINERAL SECTOR, MINERALS, MINES, MINING COMMUNITY, MINING COMPANIES, MINING COMPANY, MINING COUNTRIES, MINING HISTORY, MINING INDUSTRIES, MINING INDUSTRY, MINING INVESTMENT, MINING LAW, MINING LAW AND REGULATIONS, MINING MACHINERY, MINING OPERATION, MINING OPERATIONS, MINING OPERATORS, MINING POLICIES, MINING PROJECT, MINING PROJECTS, MINING REGIONS, MINING SECTOR, MINING SECTOR REFORM, MINING SECTOR REFORMS, MOLYBDENUM, MONETARY FUND, MORTALITY, MULTIPLIER EFFECTS, NATIONAL INCOME, NEGATIVE EXTERNALITIES, NICKEL, OIL, OUTPUTS, OUTSOURCING, PERSONAL INCOME, PHYSICAL INFRASTRUCTURE, PLASTIC, PLATINUM, PORT FACILITIES, PRECIOUS STONES, PRICE CHANGES, PRIVATE INVESTMENT, PRODUCTION COSTS, PROTECTIVE EQUIPMENT, PUBLIC PARTNERSHIP, PUBLIC-PRIVATE PARTNERSHIPS, RAIL, RAIL INVESTMENTS, RAIL LINK, RAILROAD, RAILROADS, RAILWAY, RAILWAYS, REGISTRATION SYSTEM, RESOURCE CURSE, ROUTE, ROUTES, SAFETY, SIZED ENTERPRISES, SMALL BUSINESS, SMALL MINING, SMALL-SCALE, SMELTER, SOCIAL CAPITAL, SOCIAL COSTS, STEEL, SUPPLIERS, SUSTAINABILITY, SUSTAINABLE MANAGEMENT, TAX COLLECTION, TAX RATES, TAX REVENUES, TECHNICAL ASSISTANCE, TIN, TRADE DEFICIT, TRAINS, TRANSIT, TRANSIT TRADE, TRANSPARENCY, TRANSPORT, TRANSPORT INFRASTRUCTURE, TREASURY, TRUE, TRUST FUNDS, TRUSTS, TUNGSTEN, UNDERGROUND, UNSKILLED LABOR, VALUATION, VALUE ADDED, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2011/02/16240684/afghanistan-mining-sector-driver-sustainable-growth-benefits-opportunities-large-scale-mining https://hdl.handle.net/10986/12370
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