Afghanistan's Taliban-run Ministry of Mines and Petroleum on Wednesday signed an agreement with the private firm Azizi Energy to develop coal and gas resources. The deal covers coal deposits in Pul-e Khumri, in Baghlan province, and gas-bearing areas at Jangal Kalan in the Amu Darya basin in northern Afghanistan.
Taliban mines minister Hidayatullah Badri said the contracts involve planned investment of $275 million over a 30-year term and cover exploration, extraction and development. The ministry, the General Directorate of State-Owned Corporations and Azizi Energy took part in the ceremony. The official summary did not say how the money would be split between coal and gas, when production would start or what share of revenue would go to the government.
According to sources, the projects are part of a wider push to link Afghanistan's domestic fuel resources to electricity generation. Azizi Energy, owned by the Dubai-based Azizi Group, says it is pursuing a programme targeting around 10,000 megawatts of power generation, though that is a development goal rather than existing capacity.
In February, Azizi Energy signed contracts with the national power utility, Da Afghanistan Breshna Sherkat, for five projects with a combined planned capacity of 845 megawatts and announced investment of about $463 million. They included three solar plants totalling 330 megawatts in Kabul, Parwan and Ghazni, and coal-fired plants in Takhar and Baghlan.
Afghanistan still imports a large share of its electricity from neighbouring countries. The Taliban administration presents domestic gas, coal and renewable projects as a way to reduce that dependence and expand supply.