Afghanistan shifts economic focus from opium to gold mining

Following the Taliban's ban on opium cultivation, which has reduced poppy farming by 95% since 2021, Afghanistan is shifting its economic focus toward gold mining. While the ban has exacerbated the country's humanitarian and economic crises, the mining sector has seen annual growth of 25% to 30% since 2022, according to World Bank data.

The Taliban government has issued hundreds of mining contracts under new legislation requiring companies to be Afghan-owned. However, these firms frequently partner with investors and capital from neighboring countries, most notably China, Azerbaijan, and Uzbekistan. Under current regulations, mining companies must pay fixed fees, employ Afghan miners, and surrender between 30% and 40% of extracted gold to the government in Kabul.