$1 trillion Afghan mineral wealth: Is Taliban offering access to American investors? What's the deal behind it?

Five years after the Taliban seized full control of Afghanistan, forcing the US-led NATO forces to move out of the country in 2021, Kabul is now trying to improve bilateral ties with Washington. The Taliban-led government is now offering American investors access to the vast mineral wealth that the country has to offer. In return, Kabul is urging Washington to ease sanctions and release billions of dollars in frozen Afghan assets.

Taliban seeks US investors for untapped mineral reserves

Foreign Minister Amir Khan Muttaqi told The Financial Times that Afghanistan’s Taliban-led government was “absolutely” willing to welcome US investment in sectors such as mining, infrastructure, agriculture and trade. In an interview published Monday (local time), Muttaqi said, "Relations between Afghanistan and the United States should not be assessed through the lens of the past 20 years of war, but rather on the basis of future co-operation." He added that the country’s economic policy remained open.

The Taliban-led government is reportedly hoping that such proposals could pave the way for Washington to agree to lift international sanctions and unfreeze Afghan assets. However, Muttaqi did not clarify whether the proposal had already been presented to the White House.

Geological assessments conducted by the US and the former Afghan government indicate that Afghanistan holds at least $1 trillion worth of largely untapped mineral resources, including deposits of copper, iron ore, niobium, cobalt, gold and lithium.

Taliban aims to improve US ties, Trump shows little interest

US President Donald Trump has shown little to no willingness to establish ties with the Taliban. Previously, he called for the return of Bagram Air Base, a demand that Muttaqi rejected, stating that all military and civilian facilities were assets of the country.

After the Taliban takeover in 2021 led to the withdrawal of US and Nato forces and the collapse of the US-backed Afghan government, the US president called the episode the “most embarrassing thing in the history of our country.”

Muttaqi has also urged Washington to reopen the US embassy in Kabul, stating that security at the site has been ensured. According to Iran International, Muttaqi, in a separate interview with Japan’s Kyodo News, called on Washington to abandon what he described as a confrontational approach towards the Taliban administration.

Taliban expands diplomatic outreach

Since returning to power in August 2021, the Taliban has stepped up efforts to attract foreign investment and has signed mining contracts worth more than $7 billion, including deals involving gold, precious stones and chromite. These contracts have been signed with countries such as China and Iran.

In recent years, Kabul has expanded its diplomatic outreach, with countries such as China, India, Iran, Qatar and several other Central Asian nations opening channels with Afghanistan and Taliban officials. Last year, Russia officially recognised the Taliban government. In May, it also entered into a military cooperation agreement with Afghanistan. Separately, in June, the European Union (EU) held talks with Taliban representatives in Brussels over the potential return of migrants.