Panjshir Emerald Auctions Draw Global Buyers Despite Mining Challenges

Panjshir, Afghanistan — Inside a crowded hall at the provincial government offices, an active auction was underway, with bids flying for small piles of roughly cut green stones. Buyers, ranging from Kabul to international markets, inspected the gems closely, often using phone flashlights to gauge their quality.

“Panjshir emeralds have many buyers around the world because of their very high quality,” gem merchant Ghulam Mustafa Habibi told Al Jazeera. “This is why their price is higher compared with other emeralds around the world.”

By the conclusion of the event, nearly 3,000 carats had been sold, marking the 23rd such auction of the year. According to officials, the value of emeralds sold so far in Afghanistan is estimated at nearly 400 million Afghanis ($6.12 million), representing a significant increase from the previous year.

For a nation strained by years of conflict and international sanctions, the trade in precious minerals serves as a critical economic lifeline, particularly in the remote northeastern region. Muhammad Aman Rezaii, a mining official overseeing numerous small-scale artisanal operations in the valley, noted that more than 15,000 people are currently employed in Panjshir’s mining sector.

On the steep hillsides of the otherwise barren landscape, miners work long hours underground. “There are hardly any companies or manufacturing factories here. The main source of employment is the mining sector,” Rezaii said, adding that authorities have identified over 2,000 additional mining sites with potential for development.

Since regaining power in 2021, the Taliban government reports having signed agreements with dozens of investors, primarily from China, Russia, and Iran, to extract gemstones and other valuable minerals. Data from the World Bank indicates that state revenues increased by 22 percent year-on-year in April and May, bolstered by mine auctions and sales of resources such as oil and precious stones.

However, the sector still suffers from a shortage of international investment and technical expertise. Hafiz Muhammad Agha Hakim, the Governor of Panjshir province, expressed hope for the establishment of an international market for Afghanistan’s minerals, potentially in Kabul.

“Processing machinery could be brought in so that these minerals can be processed and standardised here before being exported to markets around the world. At the moment, there is no standardised centre or proper processing facility,” Hakim said.

Meanwhile, on the ground, miners like Mahdi work in near-total darkness, using basic tools such as crowbars, shovels, pickaxes, and drills. Mahdi highlighted the difficulties posed by the lack of modern equipment.

“There are many challenges because we don’t have advanced equipment,” he said. Rezaii emphasized the need for better gear to improve safety and professionalism, noting that the area is prone to landslides, avalanches, flooding, and falling rocks, leaving workers in extremely hazardous conditions.