China Expands Afghan Mining Amid Local Anger
Chinese firms are pursuing oil, gold and copper projects in Taliban-ruled Afghanistan, drawing complaints from residents who say they bear the costs.
Updated on Nov. 2, 2026 in Oil and Gas
China has expanded mining projects in Taliban-ruled Afghanistan, including a 25-year oil extraction contract signed in January 2023 and a gold project that began mining in January 2026. Residents in Takhar and Badakhshan provinces have clashed with and complained about the projects.
Why it matters
China kept its Kabul embassy open after Western nations withdrew, and has become one of Afghanistan's largest trading partners. The Taliban government, which needs revenue and external support without conditions tied to human rights, views the mining deals as a source of income.
The Taliban signed a 25-year oil extraction contract with Xinjiang Central Asia Petroleum and Gas Co. in January 2023, and the company has promised $540 million for the Amu Darya basin site. Whether that investment will materialize, and how benefits will be distributed, remains unclear.
The players
Taliban
The Islamist militant group that governs Afghanistan and has actively courted Chinese investment to fund its government and gain external support.
Xinjiang Central Asia Petroleum and Gas Co.
A Chinese state-linked energy company that holds the 25-year oil extraction contract in Afghanistan's Amu Darya basin.
The details
A Chinese mining consortium holds a copper contract at Mes Aynak in Logar province, while the China-Afghanistan Company began gold mining and processing at the Samti concession in Takhar province in January 2026. Local residents there say they were excluded from economic benefits while bearing environmental and economic costs, and residents in Badakhshan province have reported losing access to land and water.
Timeline
January 2023: Taliban signs 25-year oil extraction contract with Xinjiang Central Asia Petroleum and Gas Co.
January 2026: China-Afghanistan Company begins mining and processing at the Samti gold site.
Market Landscape
China's expansion into Afghan oil, gold and copper follows a pattern of Chinese state-linked resource deals in countries where Western governments have withdrawn or set conditions. The arrangement gives Beijing access to extraction rights while the Taliban gains revenue without the human-rights conditions Western nations had attached to aid.
For readers tracking global energy and commodity supply, the Afghan contracts may influence future oil and gold availability from a region with limited Western oversight. Local disputes over land and water also signal the operational risks that foreign-run extraction projects can face.
The takeaway
Foreign resource deals can deliver revenue to host governments while leaving nearby communities with the costs, a dynamic visible in China's Afghan projects. Tracking who receives the benefits of these contracts is key to understanding their long-term impact.
Further reading
Explore more Oil and Gas coverage for context on energy deals like these.
