USAID MINING INVESTMENT AND
DEVELOPMENT FOR AFGHAN
SUSTAINABILITY (MIDAS) MONTHLY PROGRESS REPORT - NOVEMBER 2013
PAMIR geologists showing MIDAS team drill core samples
Contract Number: AID-306-TO-13-00003
5 DECEMBER 2013
This publication was produced for review by the United States Agency for International
Development. It was prepared by ECC Water & Power LLC.
MONTHLY PROGRESS REPORT (November 2013) 1
Contract Information
Project Title Mining Investment and Development for Afghan Sustainability
(MIDAS)
USAID Contract Number AID-306-TO-13-00003
Contracting Officer’s Representative
(COR) Khalid Ludin
Contracting Officer Maychin Ho
MIDAS Overview
The United States Agency for International Development’s (USAID) Afghanistan country strategy
includes development of sustainable economy and infrastructure in Afghanistan. USAID’s Office of
Economic Growth and Infrastructure launched the Mining Investment and Development for Afghan
Sustainability program in 31 March 2013. Its mission is to support the government of Afghanistan to
strengthen the institutional capacity of the Ministry of Mines and Petroleum and relevant private sector entities to exploit Afghanistan’s wealth of natural resources, in line with international standards.
DISCLAIMER
The views expressed in this publication do not necessarily reflect the views of the United States Agency for
International Development or the United States Government.
MONTHLY PROGRESS REPORT (November 2013) 2
TABLE OF CONTENTS
Table of Contents ................................................................................................ 2
List of Acronyms ................................................................................................. 3
Executive Summary ............................................................................................ 4
COMPONENT I: LEGAL AND REGULATORY REFORM ............................. 5
Progress of Mining Law .................................................................................................... 5
COMPONENT II: CAPACITY BUILDING AND MINERAL
EXPLORATION .................................................................................................. 5
Ministry On-Budget Progress ......................................................................................... 6
COMPONENT III: MINING-RELATED ENTERPRISE DEVELOPMENT ..... 7
CROSS-CUTTING COMPONENT: GENDER ................................................. 8
PLANS FOR NEXT MONTH ............................................................................ 9
PROJECT ADMINISTRATION ......................................................................... 9
Annex 1: Training and Event Schedule ........................................................... 10
MONTHLY PROGRESS REPORT (November 2013) 3
LIST OF ACRONYMS
ACOR Alternate Contracting Officer’s Representative
ADB Asian Development Bank
AGS Afghanistan Geological Survey
ANDS Afghanistan National Development Strategy
ASI Adam Smith International
AV Armored Vehicle
CBAGS II Capacity Building of AGS II (component of WB SDNRP)
CCN Cooperating Country National
CO Contracting Officer
COP Chief of Party
COR Contracting Officer’s Representative
CPFF Cost-Plus-Fixed-Fee Contract
DFID Department for International Development (UK Government)
DTL Deputy Team Leader
EGGI Economic Growth and Governance Initiative
EI Extractive Industry
E-WP ECC Water & Power LLC
GFE Government Furnished Equipment
GIRoA Government of the Islamic Republic of Afghanistan
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit
H.E. His Excellency
IARCSC Independent Administrative Reform and Civil Service Commission
MAC MIDAS, ASI, and CBAGS II (donor coordination committee)
MIDAS Mining Investment and Development for Afghan Sustainability
MoMP Ministry of Mines and Petroleum (formerly Ministry of Mines)
MOWA Ministry of Women Affairs
NAPWA National Action Plan for Women in Afghanistan
NDS National Directorate of Security
OAA USAID/Afghanistan Office of Acquisition and Assistance
OEGI USAID/Afghanistan Office of Economic Growth and Infrastructure
PLSO Partner Liaison Security Office
SDNRP Sustainable Development of Natural Resources Project (WB)
SRK ES SRK Exploration Services
SME Small and Medium-sized Enterprise
TAFA Trade Access and Facilitation for Afghanistan
TAMOMP Technical Assistance for the Ministry of Mines and Petroleum (DFID-funded/ASI project)
TCN Third-Country National
TFBSO Task Force for Business and Security Operations
TI Training Institute
TL Team Leader
T-VET Technical and Vocational education and training
TO Task Order
USAID United States Agency for International Development
USGS United States Geological Survey
USN United States National
WB World Bank
MONTHLY PROGRESS REPORT (November 2013) 4
This report summarizes project activities and accomplishments under the USAID Mining Investment and
Development for Afghan Sustainability (MIDAS) Project for November 1 - 30, 2013. The Monthly
Report for December is due on January 5, 2013.
EXECUTIVE SUMMARY
H.E. Minister Barekzai Endorses MIDAS Work plan. MIDAS presented its work plan to the
minister. The Minister endorsed the MIDAS work plans presented, and commented that if results
from next year’s exploration programs were positive, one or more of these opportunities could be
ready for the Ministry to tender as early as next summer or fall.
Work Plan Submitted. Component 1, 2 and 3 submitted their work-plan to USAID and awaiting
approval. MIDAS advisors reviewed the proposed work plans with the MoMP Director of Policy,
Acting Director of AGS and the MoMP legal department.
Afghan Businesses Met to Seek Support for Exploration Work. MIDAS visited Pamir
Geotechnical Services, Omran Geotechnical and Wadan Hewad Group to assess their labs, drilling
equipment, and general capabilities to address MIDAS’s future drilling requirements. Over the next
three years, MIDAS anticipates drilling at least 20,000 to 30,000 meters core of Hajigak, Shaida,
Balkhab, Badakhshan and Zarkashan projects.
Study Tour to Bamyan Province. MIDAS participated in a field trip to Bamyan mining areas of
Hajigak and Syadara organized by Afghanistan Watch to better understand the community’s
knowledge on mining, their rights and how prepared they are for development and to discuss the
impact of the extractives industry on women. The trip, especially the meeting with the Hajigak
mining council, will inform MIDAS as it works to create similar bodies across Afghanistan.
Searching for Evidence of Ancient Silver Mines in Panjshir Valley. MIDAS, DAFA and an
exploration geologist from the Afghan Geologic Survey (AGS) went on a one-day field mission to
the Bazarak village of Panjshir to search for silver deposits in a set of caves in a valley of the Hindu
Kush. Archaeological evidence, provided by DAFA, suggests the caves may be the remnants of old
silver mines.
Donor and Project Coordination. MIDAS met with several other donor organizations to share
activities and discuss collaboration; they included: DFID, ASI, CBAGS II, GIZ, TFBSO, World Bank,
and Sheberghan Gas Development Project. The MIDAS, ASI and CBAGS II (MAC) monthly meeting
was held. As a result, a combined workshop was suggested to share the results of project activities
to the Minister of Mines and Petroleum. MIDAS’s Gender advisor met Oxfam and Global Rights to
discuss needs for capacity building of lawyers in Extractive Industry issues.
MONTHLY PROGRESS REPORT (November 2013) 5
COMPONENT I: LEGAL AND REGULATORY REFORM
Deliverables in Development. The team began working on two deliverable studies, the first is the
“Legal and Regulatory Assessment of the Extractive Industries Sector in Afghanistan,” including MoMP, its
departments and enabling legislation. This assessment will analyze the current Minerals Law and
recommend the regulations necessary to implement it, as well as assess the organizational structure of
the Ministry of Mines and Petroleum, including the Gender Policy Unit.
The second study in development is a “Training & Capacity Building Plan” for MoMP. A plan will be laid
out to build capacity within the MoMP and enable it to become a driver of the nation’s economic development.
Mining Legal Environment Reviewed with NGOs. The team leader met with legal advisors for
Adam Smith International, the Afghanistan Campaign Leader for Global Witness and the Program Office
for Revenue Watch Institute. These meetings provided input on the current state of the legal and
regulatory environment in Afghanistan’s mining sector as well as the current efforts to modify the environment.
Progress of Mining Law A draft of a new Minerals Law continues to be debated and considered by Parliament. MIDAS provided
USAID and U.S. Embassy officials with a brief on the pros and cons of the new draft Minerals Law, and
their potential to impact international interest in mineral development in Afghanistan. In general, most of
the raised issues could effectively be dealt with through regulatory design. MIDAS will work closely with
MoMP to develop the appropriate regulations and processes to implement an investor-friendly law that protects the rights of local communities.
Global Witness submitted a series of comments both praising Afghanistan for its development of an
amended mining regime and expressing concern that the new draft law may not go far enough to ensure
fairness and equity to all parties which may be impacted by mining. Specifically, they suggested that
procedures for dispute resolution may be too costly for local communities to invoke.
COMPONENT II: CAPACITY BUILDING AND MINERAL
EXPLORATION
Deliverable Submitted. Component 2
delivered its “Comprehensive Plan for Mineral
Targets for Exploration and Tender Process
Development” to USAID. The study provides a
frame of reference for mineral exploration and
tendering of early-stage projects, as well as
providing background information that can serve
as a point of reference for the MIDAS Exploration
strategy, particularly in regards to the mineral
commodities most sought-after by investors, and
the types of companies willing to work on early-
stage mineral deposits in Afghanistan.
Drill rigs at Omran Geo Technical Services
MONTHLY PROGRESS REPORT (November 2013) 6
Afghan Businesses Met to Seek Support for Exploration Work. MIDAS visited three Afghan
owned local construction and engineering businesses to assess their equipment and capacities for future
collaboration. MIDAS visited the Wadan Hewad Group, to assess capacities for future AGS core storage
buildings. The current mining law requires that half of each drill core be provided to the AGS, but the
AGS has no facilities to securely store drill cores. Over the next three years, MIDAS anticipates drilling
at least 20,000 to 30,000 meters of core. The preferred bidders for the Hajigak, Shaida, Balkhab,
Badakhshan and Zarkashan projects could collectively drill upwards of 300,000 to 500,000 meters of
core in this same period. Adequate storage space will be essential.
Visits were also made to the offices, laboratories and equipment storage yards of Pamir Geotechnical
Services and Omran Geotechnical Company. MIDAS assessed each firm’s drilling capacities to
determine if there might be locally-owned businesses that could possibly bid on future MIDAS drilling
work. Both companies have more than 5 drill rigs (identical to the equipment owned by AGS), as well
as extensive stocks of spare parts. Local drill firms not only offer a cost savings of at least 50% compared
international firms, but they are also in it for the long run. With the proper experience, they would be a
sustainable force for mineral exploration. MIDAS will continue to gather information on other drilling
firms with experience working for US government clients.
Visit to Panjshir Valley for Evidence of Ancient
Silver Mines. On November 4, 2013, the MIDAS
team, Mr. Philippe Marquis, DAFA Director
(Délégation Archéologique Francaise en Afghanistan)
and an exploration geologist from the Afghan
Geologic Survey (AGS) went on a one-day field
mission to the Bazarak village of Panjshir to search for
silver deposits in a set of caves in a valley of the
Hindu Kush. Archaeological evidence, provided by
DAFA, suggests the caves may be the remnants of old
silver mines.
With the onset of winter weather, particularly at
higher elevations, the ability to do further field work
will likely be very limited until next April.
Minister Briefed on MIDAS and Development Opportunities. MIDAS briefed H.E. Minister
Barekzai twice this month on the work of MIDAS, including expected mineral exploration projects, and
on the major mineral commodities present in the country, their geologic setting, and their development
potential. Projects shared with the Minister included: Panjshir (Silver), Salang (tantalum), Bamyan
(molybdenum), Sya Dara (iron ore), Bamyan (granite).The Minister endorsed the MIDAS exploration
projects that were presented, and commented that if results from next year’s exploration programs
were positive, that one or more of these opportunities could potentially be ready for the Ministry to
tender as early as next summer or fall. This meeting paves the way for the future coordination of
MIDAS with MoMP.
Ministry On-Budget Progress The On-Budget Manager arrived in-country and began meeting with his counterparts from the MoMP to
plan for future activities. MIDAS is awaiting preparation of an “Implementation Letter” by USAID to be
signed by USAID, MoF and MoMP to start the on-budget process. This will happen in March 2014.
MIDAS exploring for silver in Panjshir
MONTHLY PROGRESS REPORT (November 2013) 7
COMPONENT III: MINING-RELATED ENTERPRISE
DEVELOPMENT
Deliverables Submitted to USAID. MIDAS’s Mining-Related Enterprise Development team
delivered SMEs Assessment Results Report, Gender Assessment Results Report, and the
Comprehensive Plan for SME Development and Access to Finance Study for Prospective Mining Sites in
Afghanistan.
The SME and Gender Assessments collected data from nine locations create a project baseline to
monitor private sector improvements. Activities are under discussion for proposed activities. A
workshop is being developed on the results of the Gender Assessment related the mining industry and
supply sector. The Comprehensive SME Development Plan integrates the observations of all the surveys
and creates a framework to define MIDAS’ activities for Private Sector Development. The team is
currently planning for implementation of the comprehensive plan.
Comprehensive Plan for SME Development. The first phase of MIDAS’s Mining-Related
Enterprise Development team’s “Baseline Training Supply Study for Prospective Mining Sites in
Afghanistan” was completed. MIDAS recognizes the importance of Afghanization and is studying the
demand for training needs in the field near prospective mining sites. MIDAS collected data on 88 Afghan-
owned training institutes and assessed their capacity to be hired to provide training for construction,
transportation, geosciences, and business consulting SMEs. Partnering with local training providers will
ensure a more sustainable approach to SME development which ensures such trainings can continue well
after the MIDAS program is complete. MIDAS will make every effort to use local sources for training.
Some examples include a recent meeting with the American University in Afghanistan to explore
teaching business management or Kardan University. In other cases MIDAS may use the oil and gas
institute in Mazar to teach welding. The local training providers will depend on the region and the
availability of SMEs.
Developing Training on Mining Development Cycle. Based on the comprehensive plan, MIDAS is
preparing presentations indicating the different stages in mining development, with a focus on the
opportunities for private sector development at each stage.
Study Tour to Bamyan. MIDAS traveled to Bamyan on a six-day, community-focused tour of the
region, organized by a network of civil society
organizations. The group saw three mines
(Hajigak, Sya Dara, and an artisanal mine), and
visited three community development councils.
The mission identified the need to increase
community engagement to foster an
understanding of the mining sector and
development process and the need to
understand the law with respect to surface and
sub-surface rights. The community also needs
assistance to apply for land titles so that they can
receive fair compensation for relocation, to
negotiate benefits with the mining company, and
to understand the role of government in the
mining process. Hajigak mining development council in Bamyan
Province.
MONTHLY PROGRESS REPORT (November 2013) 8
Government has a strategic role to help communities understand the mining process and prepare
accordingly. Some areas where government intersects includes helping people understand the law and
rights, such as surface and sub-surface rights and land titling which is a function provided by the
government. Land titling is required in order for people to receive compensation in times of
displacement. Government can also provide some mechanisms to reduce conflict. Component 3 is
preparing trainings on these two topics.
This trip helped MIDAS to discuss the impact of the extractives industry on women, and involvement of
women in Afghanistan’s mining sector. An important mission of MIDAS is to ensure that women play an
important role as participants in, and beneficiaries of mineral development. Overall, women are poorly
represented in the mining sector. MIDAS activities will include special attention towards accelerating the
skills and opportunities for women in associated businesses, and in the MoMP/AGS. We include them as
targets for community outreach, training, capacity building, and decision-making. This includes special
training for women with emphasis on culturally acceptable jobs such as accounting, finance, office
management, general services.
This experience will help MIDAS will refine its work to meet the needs of communities on the ground.
Training Institution Capacity Building. A MIDAS advisor met the Deputy Ministry of T-VET to
brief him on the activities of MIDAS and to discuss the opportunities for training institutes to play a role
in private sector development for the mining sector. MIDAS aims to make a lasting impact on the mining
industry through building the capacity of local training institutions and improving knowledge sharing
among the MoMP and the MoE, MoHE, MoLSAMD, and DM-TVET.
MIDAS met the CINOP Program, aimed at introducing national occupational standards in Afghanistan.
There is currently little training in geosciences due to poor awareness of the opportunities in the
extractives sector.
CROSS-CUTTING COMPONENT: GENDER
As part of efforts to mainstream gender across all components of MIDAS, the Gender Advisor
continued to work closely with team leaders to review and adjust their work plans.
MIDAS met with the MoMP Gender unit to encourage them to outreach and educate the stakeholders
on the importance of gender equality issues in mining sector. MIDAS will continue to meet with
stakeholders in December.
MIDAS’s Gender advisor presented the importance of gender equality in the mining sector, at a
workshop to highlight extractive industry issues to civil society run by Afghanistan Watch and Global
Rights in Kabul from November 7-10, 2013.
The MIDAS Gender advisor provided input on gender issues for the final draft of the Strategic
Environmental and Social Assessment for the Extractives Industry Sector in Afghanistan (SESA-EISA)
document. The paper will be aligned with the Environmental and Social Management Framework (ESMF)
for Afghanistan, as a guide to GIRoA’s future development of the sector, prepared by the GIRoA with
the support from the World Bank.
MIDAS will begin work on the development of a virtual resource collection and bibliography on gender
and extractive industries, next month. Training materials will also be prepared.
MONTHLY PROGRESS REPORT (November 2013) 9
PLANS FOR NEXT MONTH
Component I
Complete the following deliverables; Legal and Regulatory Assessment of the Extractive Industries
Sector in Afghanistan, and the Training & Capacity Building Plan for MoMP.
Component II
Assess the drilling equipment and capacity of AGS crews to conduct planned 2014 exploration
drilling programs
Continued research and evaluation of lower-cost drilling options.
Weather-permitting, a possible one-day exploration trip is planned to the Salang Pass Tantalum
project to assess road access and other logistical issues for 2014 exploration work.
Work with USAID and MoMP to progress the on-budget program.
Component III
MIDAS will develop workshops to support SMEs to meet workforce demands in pre-exploration
and exploration phases of mine development.
A field exursion to Badakhshan and Takhar gold deposit sites plus visits with the government,
MOMP, SMEs, and educational institutes.
Planning detailed training programs, community engagement and training events (see Annex I).
PROJECT ADMINISTRATION
Logistics
MIDAS located and built out new office space at the Baron Hotel after negotiations and took residence
in the new office space at the end of November. MIDAS was informed in October that their office space
in the Chemonics Block at the Baron Hotel was to be vacated and returned to Chemonics by the end of
November. MIDAS’s has also been provided with office space inside Barron Hotel for its M&E team.
The Ministry provided MIDAS with a second office at AGS in October. To date, MIDAS has been unable
to gain access to that room due to the prior occupant not having moved out. Efforts will be re-doubled
in December to secure access to that new office.
Security
No major security incidents were reported during the reporting period. All movements in and outside
of Kabul proceeded safely. MIDAS experienced two days of mission critical movements within Kabul
City, the first on November 14 which was Ashura Day and the second on November 21 which was the
first day of the Loya Jirga.
Vehicles
USAID inspected the damaged armored vehicle 228 EWP and recommended to destroy it. MIDAS is
reviewing tenders for lease of 2 additional soft skin vehicles. All other vehicles are operating normally.
MONTHLY PROGRESS REPORT (November 2013) 10
ANNEX 1: TRAINING AND EVENT SCHEDULE
Summary of Training Activities for Component 3
MIDAS Component III is focused on private sector development that directly and indirectly supports the
extractives industry. It will focus on the following three initiatives:
Community Engagement and Civil Society Capacity Building – Eight training modules will be
developed with consultation from the MOMP and delivered in February to at least 100 participants from
the MoMP, Civil Society Organizations, donor projects, community leaders, training institutes, other
governmental departments, and SMEs. The objective is to train trainers and other groups who operate
in the nexus of communities, private sector, and mining initiatives to understand the mining industry and
stakeholder roles and activities to nurture and advance the private sector.
Long-term Strategic Development Initiative with MOMP to Develop Mining Private Sector
– MIDAS will work with the Directorate of Policy and Investment Directorate from the MOMP to
empower communities to analyze the mining sector, explore scenarios for development, and design a
five-year strategic plan on the development of the mining sector as an engine of growth for Afghanistan.
It will build on the Community Engagement training.
SME Training and Capacity Building – this initiative will support SMEs with training, mentoring, and
support. With improved expertise, SMEs can win contracts from mining investors and offer firms the
level of service needed.
The expected training schedule is as follows:
Community Engagement and Civil Society Capacity Building
Training Description Time Period Estimated Number of
People Trained
Design and deliver 8 training modules to
prepare communities and other stakeholders
to understand the process of mining
development and how they can prepare to
play a role in the private sector
December 1, 2013
to February 28,
2014
200 people from various
communities, civil society
organization, MoMP, other
governmental departments,
SMEs, and financial institutions.
A Long-term Strategic Development Initiative to Develop the Mining Private Sector
Training Description Time Period Estimated Number of
People Trained
2 Study Tours to Mines in Kyrgyzstan and
Mongolia to visualize how large mines
operate, understand the role of all
stakeholders to support private sector
development in mining
May – June, 2014 90 people from MOMP,
Communities, CSOs, SMEs,
financial institutions, training
institutions
MONTHLY PROGRESS REPORT (November 2013) 11
Strategic Vision and Long Term Planning
training for MoMP to engage citizens and
stakeholders in a co-constructed mining
sector development plan
January – June,
2014
100 people from MOMP,
communities, CSOs, SMEs,
financial institutions, training
institutions
National Mining Conference to Train
stakeholders on processes to stimulate
private sector and illustrate progress in the
mining sector
September, 2014 150 people from MOMP,
communities, CSOs, SMEs,
financial institutions, training
institutions
Community Development Agreement
training and roundtables, Economic
Development Forums in the regions
August, 2014 25 people per region (estimated
3 regions) = 75 people
Business Enabling Environment Training with
Financial Institutions and leasing companies
to support mining.
To August 2014 50 people trained (banks,
Chambers of Commerce, and
others)
Intergovernmental training to improve
coordination and stimulate private sector
development (Ministry of Education,
Commerce and Industry, Foreign Affairs,
Labor, and others.
June, 2014 20 people from governmental
entities
Knowledge Hub meeting to integrate
learnings from each donor project into the
MOMP activities (monthly)
January –
September, 2014
200 people trained at the
MOMP and other mining
initiatives
SME Training and Capacity Building
Training Description Time Period Estimated Number of
People Trained
Training for SMEs on how to apply for
tenders, how to write contracts, etc
March – June, 2014 30 people x 3 days = 90 people
(at least one person from 30
SMEs)
Assist SMEs with training in business
management, health and safety, and services
(welding, drilling, etc)
March – June, 2014 20 people x 15 days = 300
people (at least one person
from 30 SMEs)