Iran’s Largest Steelmaker Eyes Afghanistan’s Mines

Iran’s Mobarakeh Steel Company has reached a broad agreement with the Taliban on cooperation in Afghanistan’s mining sector, according to Iran’s specialist industry and mining outlet Irasin.

Iran’s Mobarakeh Steel Company has reached a broad agreement with the Taliban on cooperation in Afghanistan’s mining sector, according to Iran’s specialist industry and mining outlet Irasin.
The report, published on Monday, 19 October, said a preliminary mining cooperation agreement is expected to be signed during an upcoming visit by Taliban officials to Tehran.
The plan aims to transfer between one and two million tons of Afghan iron ore to Iran each year.
In a report by Irasin, Mobarakeh Steel had come close to an initial agreement to enter Afghanistan’s mining sector after around a year and a half of negotiations with the Taliban.
The effort builds on attempts by Iranian companies dating back around 15 years to invest in Afghanistan’s mines.
Hassanali Haghshenas, chief executive of Mobarakeh Steel’s Mineral Supply and Processing Holding, told Irasin that the company, acting as Iran’s official representative, had carried out extensive assessments of state-owned and private mines in Afghanistan.
He said the preliminary agreement, once signed, would pave the way for involvement in the exploration and extraction of various mineral deposits.
Up to Two Million Tons of Iron Ore a Year
Under the plan, Mobarakeh Steel intends in the first year after the agreement is signed to transfer between one and two million tons of graded iron ore with a purity of more than 61% to Iran annually.
Haghshenas said it had been proposed that initial processing take place inside Afghanistan or directly at the border.
He added that a comprehensive plan had also been presented to the Taliban that would extend as far as producing steel billets inside Afghanistan.
He stressed that the agreement was not limited to iron ore and could also include Afghanistan’s copper, gold, zinc and polymetallic deposits.
According to Haghshenas, suitable mining areas have already been identified in these sectors, but entry into them would depend on final Taliban approval.
Noting that the development of Afghanistan’s mining sector is closely linked to railway expansion, Haghshenas emphasised the importance of the Herat-Iran railway for transporting heavy mineral cargo.
He described security, mining infrastructure and processing facilities as the main prerequisites for the project and said these issues could be resolved at the government level.
He said the broader aim of establishing this framework was to open the way for an organised presence by other Iranian mining and industrial companies in Afghanistan.
Afghanistan and Iran are currently connected by the roughly 225-kilometre Khaf-Herat railway, one of the most important transit links between the two countries.
The railway was first inaugurated online by senior officials from both countries in December 2020, but operations were suspended after the political changes of August 2021 and the Taliban’s return to power.
Freight services on the route resumed in July 2023 following diplomatic consultations and repairs to the railway.
Major Iranian industries see the Khaf-Herat railway as the main economic route for transporting up to two million tons of Afghan iron ore annually.
The line also provides landlocked Afghanistan with access to international waters through Iran’s railway network.