Afghanistan has signed a major gold mining agreement with companies from Azerbaijan and Kyrgyzstan, marking a new step in attracting foreign investment into its natural resources sector.

The Afghan Ministry of Mines and Petroleum confirmed a five-year contract worth more than $20 million to develop the Qala-e-Zal gold deposit in Kunduz province, The Caspian Post reports via 24.kg.

The deal was signed by Afghan Minister Hedayatullah Badri in the presence of the ambassadors of Azerbaijan and Kyrgyzstan. The agreement involves companies Reef Group LLC and Subhan Momand Co.

The Qala-e-Zal site covers an area of 5.97 square kilometres, with total investment in the project estimated at $20.24 million. Under the terms of the contract, the companies will also pay a 30% royalty and contribute $200,000 toward social development projects in the region.

The project is expected to create around 100 direct and indirect jobs, boosting local employment and infrastructure development.