Memorandum submitted by the British Geological
Survey
INSTITUTIONAL STRENGTHENING
OF THE
AFGHAN GEOLOGICAL
SURVEY
Background
1. The Department for International Development
(DFID) awarded the British Geological Survey (BGS) a grant amounting
to £3.8 million over three years to carry out an institutional
strengthening project within the Afghan Geological Survey (AGS—part
of the Ministry of Mines and Industries).
2. The British Geological Survey is a component
institute of the Natural Environment Research Council, which falls
under the Office of Science and Technology of the Department for
Trade and Industry.
3. The justification for UK support was
that the minerals sector is one of the few obvious, near-term
economic alternatives to the poppy industry. Not only could it
provide significant foreign revenue, but also generate employment
and an alternative livelihood in rural areas. In many developing
countries, it has been shown that development of mineral resources
can provide a rapid path to economic self-sufficiency. Besides
the benefits deriving from mining itself, the industry would spawn
significant secondary enterprises and spin-off activities. Finally,
supporting and building capacity in the AGS would support the
DFID aim of good governance.
4. The basis of the BGS project was (and
is) to build capacity in the war-ravaged AGS, which would then
act as an arm of government to help promote and oversee the minerals
sector, and hence attract inward investment. An efficient government
agency able to deal with the international mining community is
vital if companies are to put considerable investment into what
otherwise would be perceived as a difficult, risky and insecure
environment.
5. In 2004 when the project started, the
AGS was an organisation in name only, and was entirely dysfunctional.
The building was a shell, initially without windows, heating,
lighting, or furnishing. It had stood at the front line of fighting
since the early 1990s. The staff were demoralised, poorly trained
and without a budget or any programme of work. Starting from a
zero base, the BGS project refurbished a suite of offices, furnished
them and provided power and a basic IT facility.
Overview
6. The project has now been operating in
Kabul for a little over a year. BGS staff numbers vary between
two and 10 at any one time. The main objective in this initial
period has been to gather together, database, assess and make
available vital geological data and information relating to the
geology and mineral potential of Afghanistan. A main drive has
been to source data on the most important (and proven) economic
deposits and to promote these to the international mining community.
In parallel with this, efforts have been made to work with the
staff of the AGS to provide training and motivation. This has
been challenging due principally to the realities of life in Kabul.
7. Professional (and other) staff in the
AGS earn around US$40/month. Given the need to live and maintain
families, even the most dedicated geologist has been forced to
seek additional employment so that their contribution to the AGS
is at best only part-time. This has compromised the work effort;
particularly since DFID policy does not permit any enhancement
of staff salaries. Unfortunately, a parallel project by the United
States Geological Survey is believed to have been supplementing
the salaries of their counterparts, which has served to cause
division and has diverted the most able staff away from the UK
run project.
8. The DFID position, which BGS fully supports,
is that the way to progress the AGS (and indeed its parent Ministry)
is to promote the Civil Service reform initiative known as the
Priority Reform and Restructuring decree. This process will reorganise
existing areas of the Civil Service into smaller, functioning
units with a proper (although not generous) salary structure.
BGS has actively supported and promoted this initiative, even
though this was not envisaged as part of its original remit. BGS
has held workshops on the new structure and provided ongoing advice
and suggestions to the Ministry of Mines and Industries. At long
last, it seems this reform is being put through. However, even
now the road to achieving this remains uncertain in terms of a
timetable. Until this is emplaced, the BGS project will inevitably
be slow.
9. Despite these limitations, the project
has made, and continues to make, an important contribution. The
Ministry in Kabul considers it to be vital and the World Bank
is full of praise and frequently looks to BGS for support and
help at a practical level. Unlike other types of interventions,
the development of a viable minerals sector cannot happen overnight.
It is likely that this work can be developed into a lasting and
important contributor to self-sufficient growth in the medium
term—perhaps five to eight years. We consider it essential
if Afghanistan is to have a long-term stable economy able to support
itself and move away from a dependency on either drugs or foreign
aid. We believe it would be a grave error of judgement to end
this project at this stage, The Minister of Mines, Dr Sediq, has
taken a close interest in the project and would, if anything,
seek an extension to the three-year project. Premature project
termination could have serious political repercussions in Kabul.
Specific areas of progress
Governance and Senior Management Advice
10. BGS staff have given support and advice
at Ministerial, Presidential Adviser, vice-Ministerial and President
of AGS levels. This advice has not only been limited to the Ministry
of Mines and Industry as BGS staff have been present at many cross-Ministry
meetings. Advice has mainly involved the application of geosciences
to policy and problem solving and has covered issues such as:
water supply, public sector reform, energy supply, the distribution
of key strategic and wealth-creating minerals and rural livelihoods.
BGS has offered training courses and workshops that have included
Ministers and Deputy Ministers.
Preparing Afghanistan for Inward Investment in Mining
11. Mining is a global industry and mining
companies are particularly attracted to countries which are politically
stable and secure, have an adequate level of mineral related geological
information in a format they can easily use, have workable mining
laws and fiscal regulations and have a competent arm of government
to deal with. Mining companies are some of the least risk-averse
companies in the world often prepared to work in "frontier
areas". Mines are costly to develop and can take several
years of operation before profits are made.
12. Afghanistan is a country that currently
has no foreign investment in mining but very significant mining
potential: a potential that is virtually untouched. This project
has started to place Afghanistan on the radar screens of mining
companies. Some of the largest and most reputable international
mining companies are showing an interest in one deposit in particular:
the Aynack copper deposit near Kabul, which is one of the largest
known un-worked copper deposits in the world. BGS and AGS have
worked to synthesise, model and re-interpret this information
in preparation for the arrival of mining companies. BGS is promoting
this deposit and Afghanistan in general at the largest mining
industry tradeshows (at Toronto and London to date). If Aynack
is worked successfully it will create many jobs, not only in mining
but also in service companies and downstream industries. Many
of the jobs will be in poor rural areas. Mines also develop a
range of infrastructure including roads, railways, energy infrastructure
and water supplies. One successful mine attracts others as it
demonstrates to the industry that it is possible to work successfully
in the country.
13. BGS is attempting to build the relevant
institutions of governance in mining. This includes training Civil
Servants in administering mining activities, developing modern
state of the art mining cadastre systems, generating a range of
information services and products, and ensuring that those areas
of government that need to support a mining industry start to
prepare themselves. A competent "Mines Department" is
essential for Afghanistan to maximise the benefits mining can
bring and ensure that mining is undertaken to the highest standards
of sustainable development.
Developing a Modern Geo-Information Capability
14. When BGS first arrived the geological
data were in a very poor condition. Within one year many of the
data have been archived and labelled. Furthermore, BGS has introduced
one of the most sophisticated IT facilities in any government
department in Afghanistan. As time passes more and more data are
being captured digitally and databased. This allows the information
to be delivered to a worldwide stakeholders through a specially
designed website and value is added to the data by generating
a range of information products.
15. This sub-project will also develop a
publicly available geological library and museum and, if things
go well, possibly a range of outreach services for small-scale
industry (such as jewellery and gems, industrial minerals, ceramics,
small scale mining etc).
Generating New Geological Products
16. A range of reports, maps, presentations,
data syntheses, new interpretations, and ultimately GIS products
and data-models has been developed for various aspects of the
geology of Afghanistan. This work is essential not only for the
mining industry but for a whole range of services including energy
minerals and oil and gas, urban planning, waste disposal, environmental
management, understanding and mitigating natural hazards, and
a range of industries (industrial minerals, road building, engineering
etc).
Industrial and Construction Minerals
17. Industrial and construction minerals
such as sand and gravel, gypsum, barytes, brick-clay, talc etc
are essential to a wide range of industry and services. Industrial
mineral projects can employ large numbers of people and be localised
quickly. BGS is working on a range of minerals in the Kabul area
with the aim of improving the knowledge base and bringing industry
together to learn from each other. This sub-project has organised
a number of highly successful seminars and workshops including
a private-industry focused Chamber of Commerce event, which received
wide media coverage. Kabul is developing rapidly as a city as
are other areas of Afghanistan. Construction and industrial minerals
and the industries they support play a vital role in urban and
infrastructure development. Usage of inappropriate and poor quality
construction materials can have dire consequences in the future.
Counterpart Training
18. Counterpart Afghan staff members are
involved in every area of the project. As well as learning a range
of technical skills the staff are being offered training in English
and IT. These training courses are widely praised for their quality
and effectiveness. The English and IT proficiency of the AGS staff
is rapidly developing as the staff realise these are generic skills
they will need for the future.
Creating a Knowledge and Expertise Node in Kabul
19. One of the biggest successes of the
project to date has been the way the project has had an impact
across many areas of development in Afghanistan. The project is
acting as a catalyst and bridge, joining up a range of people
and expertise. The project has drawn together people from the
university and polytechnic in Kabul, a range of government agencies,
and visiting consultants and agencies such as the World Bank to
name but a few. The constant residential presence in Kabul has
been particularly appreciated allowing solid business relationships
to be developed. Through this a range of knowledge and expertise
has been widely distributed and shared.
Alternative Livelihoods
20. It is our firm belief that this project
has the potential to attract investment and create jobs. Afghanistan
desperately needs economic development, wealth creation and increased
employment: this will be the real route to the eradication of
narcotics together with good governance. This inward investment
will take some time but once it starts it has the potential to
snowball. We hope that DFID will fund this project sufficiently
well and for a long enough time to make a lasting positive impact
on the economy.
Conclusion
21. In spite of the many difficulties in
the setting up and running of this project and bearing in mind
that Afghanistan is a difficult country to work in, we believe
the project has made remarkable progress in a short space of time.
The BGS staff have all enjoyed the challenges of working in Afghanistan
and have been very effective. Although the project started at
a zero base level with exceptionally poor infrastructure and a
very weak level of government structure, it is already delivering
a high quality service and making a real difference. We hope DFID
will give us the opportunity to further progress this project.
November 2005
| 
