The Afghan Government has terminated the contracts given to two companies for the operation of a gold mine in Badakhshan’s and Sar-e Pul’s Balkhab copper mine.
The Ministry of Mines and Petroleum (MoMP), said on Sunday that President Ashraf Ghani ordered the termination of the contracts during a High Economic Council meeting last week.
“A few days ago, the High Economic Council decided to terminate the contracts of the Badakhshan’s gold mines and Sar-e Pul’s Balkhab copper mine,” said MoMP spokesman Abdul Qadir Mutfi.
Mutfi stated that the contracts were terminated because the companies could not fulfill the commitments they made during the bidding process. The primary issue was the failure of the companies to fulfill their financial commitment. The two companies were supposed to invest $87 million in these projects.
In 2012, a Turkish/Afghan consortium and an English company won bidding for Badakhshan gold mines and Balkhab’s copper mine. A former government minister was the primary shareholder in one of the companies.