Investors go for gold under Afghan hills

Afghan government officials have approved a multimillion-dollar contract to mine gold from the county's northern mountains.

By The Newsroom

Published 14th Dec 2010, 22:52 BST

Updated 14th Dec 2010, 22:52 BST

The deal is the first mining project backed by private investors in the West. Afghan and US officials hope many more deals will follow to help boost the economy of the impoverished nation after 10 years of war.

"This project is an important step forward for Afghanistan's economic sovereignty," said US deputy under secretary of defence Paul A Brinkley. "It represents a turning point in the history of international investment into Afghanistan."

Mr Brinkley, who directs the Defence Department's task force for business and stability operations, said the deal shows that Western investors are showing confidence in Afghanistan's economic future.

About 10 investors – most of them from the US and UK – are investing an estimated $50m (32m) in the mine, about 84 miles north west of Kabul, according to Wahidullah Shahrani, Afghanistan's Minister of mines.

Investors Western