World Bank2013-02-152013-02-152011-02https://hdl.handle.net/10986/12370This 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.en-USCC BY 3.0 IGOAIRALUMINUMAMORTIZATIONARTISANAL AND SMALL-SCALE MININGARTISANAL MININGBALANCE OF PAYMENTBALANCE OF PAYMENTSBASE METALSBENEFICIARIESBENEFICIATIONBIDBIDSBUDGETINGBUSINESS PLANNINGCADASTRECAPACITY BUILDINGCAPITAL SHORTAGESCOALCOAL MINECOMPARATIVE ADVANTAGECONSUMER GOODSCONSUMERSCONTRACT RENEGOTIATIONSCOPPERCOPPER MINECOPPER MINESCORPORATE INCOME TAXESDECENTRALIZATIONDECISION MAKINGDEPOSITDEVELOPMENT BANKDEVELOPMENT INSTITUTIONSDIRECT INVESTMENTDISCOUNT RATESDISPOSABLE INCOMEDRILLINGDRIVERSDRIVINGECONOMIC BENEFITSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC RECOVERYECONOMIC SECTORSECONOMIC VALUEECONOMIES OF SCALEEITIEMPLOYMENT OPPORTUNITIESENVIRONMENTAL ASSESSMENTENVIRONMENTAL CONTAMINATIONENVIRONMENTAL COSTSENVIRONMENTAL DAMAGEENVIRONMENTAL PROTECTIONENVIRONMENTAL PROTECTION AGENCYEXCHANGE RATEEXPENDITUREEXPENDITURE MANAGEMENTEXPORTSEXTERNALITYEXTRACTIVE INDUSTRY PROJECTSFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN WORKERSFREIGHTFREIGHT COSTSFUTURESGASGDPGEMSTONE MININGGEMSTONESGEOLOGICAL INFORMATIONGEOLOGICAL SURVEYGEOLOGYGOLDGOLD MINEGOLD MINESGOVERNANCE ISSUESGOVERNMENT CAPACITYGOVERNMENT EXPENDITUREGOVERNMENT EXPENDITURESGOVERNMENT SPENDINGHIGH TAXHOST GOVERNMENTSHUMAN CAPITALHUMAN RESOURCESINCOME TAXINDUSTRIAL ECONOMYINDUSTRIALIZATIONINFORMATION SYSTEMSINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE DEVELOPMENTSINFRASTRUCTURE INVESTMENTSINFRASTRUCTURE PROJECTSINNOVATIONINVESTINGIRONIRON OREJOB CREATIONKAOLINLAND USELAND USE PLANNINGLARGE MININGLARGE-SCALE MINESLARGE-SCALE MININGLIMESTONELOCAL ECONOMYLOCAL GOVERNMENTLOCAL GOVERNMENTSLOCAL INFRASTRUCTUREMACROECONOMIC STABILITYMACROECONOMIC VARIABLESMARGINAL DEPOSITSMARGINAL PROPENSITY TO CONSUMEMEDIUM ENTERPRISEMETALSMINE CLOSUREMINE DEVELOPMENTMINE EMPLOYEESMINE EMPLOYMENTMINE OPERATORSMINE OWNERMINE OWNERSMINE SITEMINE WORKERSMINERAL DEPOSITSMINERAL ECONOMICSMINERAL INDUSTRYMINERAL OCCURRENCESMINERAL PRICESMINERAL PRODUCTIONMINERAL RESOURCESMINERAL RIGHTSMINERAL SECTORMINERALSMINESMINING COMMUNITYMINING COMPANIESMINING COMPANYMINING COUNTRIESMINING HISTORYMINING INDUSTRIESMINING INDUSTRYMINING INVESTMENTMINING LAWMINING LAW AND REGULATIONSMINING MACHINERYMINING OPERATIONMINING OPERATIONSMINING OPERATORSMINING POLICIESMINING PROJECTMINING PROJECTSMINING REGIONSMINING SECTORMINING SECTOR REFORMMINING SECTOR REFORMSMOLYBDENUMMONETARY FUNDMORTALITYMULTIPLIER EFFECTSNATIONAL INCOMENEGATIVE EXTERNALITIESNICKELOILOUTPUTSOUTSOURCINGPERSONAL INCOMEPHYSICAL INFRASTRUCTUREPLASTICPLATINUMPORT FACILITIESPRECIOUS STONESPRICE CHANGESPRIVATE INVESTMENTPRODUCTION COSTSPROTECTIVE EQUIPMENTPUBLIC PARTNERSHIPPUBLIC-PRIVATE PARTNERSHIPSRAILRAIL INVESTMENTSRAIL LINKRAILROADRAILROADSRAILWAYRAILWAYSREGISTRATION SYSTEMRESOURCE CURSEROUTEROUTESSAFETYSIZED ENTERPRISESSMALL BUSINESSSMALL MININGSMALL-SCALESMELTERSOCIAL CAPITALSOCIAL COSTSSTEELSUPPLIERSSUSTAINABILITYSUSTAINABLE MANAGEMENTTAX COLLECTIONTAX RATESTAX REVENUESTECHNICAL ASSISTANCETINTRADE DEFICITTRAINSTRANSITTRANSIT TRADETRANSPARENCYTRANSPORTTRANSPORT INFRASTRUCTURETREASURYTRUETRUST FUNDSTRUSTSTUNGSTENUNDERGROUNDUNSKILLED LABORVALUATIONVALUE ADDEDWAGESWorld Bank10.1596/12370