In a chilly auditorium in Afghanistan, freshly mined green emeralds were inspected by gemstone dealers during the Taliban's weekly gemstone auction. This event, held in the emerald-rich Panjshir Province, marks the Taliban government's efforts to capitalize on the country's vast mineral and gemstone resources.
Since taking control in August 2021, the Taliban have reportedly signed agreements with numerous investors to mine valuable minerals and gemstones, including gold, copper, and chromite. These resources are seen as a potential lifeline for Afghanistan's struggling economy.
China has emerged as a leading investor under its Belt and Road Initiative, with Russian and Iranian investors also participating in mining activities. The U.S. government estimates that Afghanistan holds at least $1 trillion in mineral deposits, including precious and semiprecious gemstones.
Despite the challenges faced during the previous U.S. occupation, including security issues and corruption, the Taliban are attempting to develop the mining sector as a source of revenue following a significant reduction in international aid since the U.S. withdrawal.
The Afghan economy has contracted by 26 percent over the past two years, exacerbated by the Taliban's ban on opium production, which has cost farmers an estimated $1.3 billion in income. Mining is seen as a potential alternative revenue stream, with several countries investing in various mining projects across Afghanistan.
The Taliban have instituted weekly emerald auctions, which allow them to control and tax the gemstone trade. Dealers are required to pay a 10 percent tax before receiving their purchased gems. The government has issued numerous licenses for emerald mining and is working to expand mining operations in other provinces.
Many existing mines face challenges such as poor infrastructure and a lack of skilled labor. The Ministry of Mines and Petroleum acknowledges the need for more engineers and technicians, and foreign investors are expected to contribute to local skill development.
Most emeralds purchased at the auctions are resold to international buyers, with some dealers reporting significant sales to clients in the United Arab Emirates, India, and Iran. However, local sales have diminished compared to previous years when international buyers frequented the market.
Dealers have adapted by seeking customers abroad, with some establishing shops in other countries. The current economic climate has made it difficult for many Afghans to afford high-value gemstones, limiting the domestic market.