Often procured locally Some local procurement Usually imported On-site mining services, e.g. Maintenance and repairs Reagents Logistics/ transport/ Fuel Grassroots geochemistry warehousing Supply chain PPE 1 (glasses, gloves and /sampling/ Exploration services helmets, cyanide and dust drillings Civil works, construction, masks) earthworks basic fabrication Machinery and Spare parts Lab analysis PPE 1 (overall, uniforms) of mining capital Explosives equipments Steel goods Original Equipment Plastic goods Manufacturers Non-core onsite services, e.g. Foods supplied supplied (sometimes through Mining contracting Camp construction local partners of international Primary crushing Catering Primary haulage dealers) Security Transport of staff If we examine Table 10 more closely, it is difficult to envisage a large amount of domestic sourcing in Afghanistan outside of the onsite without a large group labeled ‘non-core services’ amount of technical assistance to identify and develop suppliers. In fact, an examination of the proposed expenditures during construction by MCC in its bid document does not reveal much opportunity for Afghans or Afghan companies other than unskilled labor on the mine site. This is not a surprising result given that Aynak would be the first large-scale mine in the country’s history. Nevertheless, a more detailed breakdown of the demands of the company would likely reveal several niche opportunities that Afghan companies could fill in a relatively short period of time. Box 2: Mining Sector Linkages in Ghana Ghana is the second largest gold producer in Africa behind South Africa. The Economic Recovery Program (ERP), which included an important mining sector reform, was launched in 1983 to stop the steady decline of per capita GDP since independence in 1957. ERP Ghana’s helped to reverse the decline in Ghanaian mineral production, leading to a significant increase in investment in exploration and equipment (>US$ 8 billion invested from 1994 to 2010) with FDI representing 95%. Mining accounted in 2008 for 45% of exports and 6% of GDP compared to 20% of exports and 1% of GDP in the 1980s. It also contributed an average of over 12% of fiscal revenues between 1990 and 2008. The industrial mining sector generates 24,000 direct employees. Many other indirect jobs are created through downstream and side-stream activities, such as: lime and cement production; local confection and supply of basic safety and protective
Often procured locally Some local procurement Usually imported On-site mining services, e.g. Grassroots geochemistry /sampling/ Exploration drillings earthworks Lab analysis Explosives Non-core onsite services, e.g. Camp construction Catering Security Transport of staff Maintenance and repairs Logistics/ transport/ warehousing Supply chain services Civil works, construction, basic fabrication PPE 1 (overall, uniforms) Steel goods Plastic goods Foods supplied Mining contracting Primary crushing Primary haulage Reagents Fuel PPE 1 (glasses, gloves and helmets, cyanide and dust masks) Machinery and Spare parts of mining capital equipments Original Equipment Manufacturers supplied (sometimes through local partners of international dealers) If we examine Table 10 more closely, it is difficult to envisage a large amount of domestic sourcing in Afghanistan outside of the group labeled ‘non-core onsite services’ without a large amount of technical assistance to identify and develop suppliers. In fact, an examination of the proposed expenditures during construction by MCC in its bid document does not reveal much opportunity for Afghans or Afghan companies other than unskilled labor on the mine site. This is not a surprising result given that Aynak would be the first large-scale mine in the country’s history. Nevertheless, a more detailed breakdown of the demands of the company would likely reveal several niche opportunities that Afghan companies could fill in a relatively short period of time. Box 2: Mining Sector Linkages in Ghana Ghana is the second largest gold producer in Africa behind South Africa. The Economic Recovery Program (ERP), which included an important mining sector reform, was launched in 1983 to stop the steady decline of Ghana’s per capita GDP since independence in 1957. ERP helped to reverse the decline in Ghanaian mineral production, leading to a significant increase in investment in exploration and equipment (>US$ 8 billion invested from 1994 to 2010) with FDI representing 95%. Mining accounted in 2008 for 45% of exports and 6% of GDP compared to 20% of exports and 1% of GDP in the 1980s. It also contributed an average of over 12% of fiscal revenues between 1990 and 2008. The industrial mining sector generates 24,000 direct employees. Many other indirect jobs are created through downstream and side-stream activities, such as: lime and cement production; local confection and supply of basic safety and protective