This is a dissertation written for the partial fulfillment of the degree of Master of Science in Economics at Leeds University Business School UK in 2012. There is tremendous interest in mining in Afghanistan a potential source of economic growth and a contributor to sustainable development. However, the potential of resource curse is high in Afghanistan. This dissertation looks into how Afghanistan could avoid the resource curse by better managing its natural resources and making it a source of competitive diversification rather than a dependence on minerals which will engender corruption, weak governance and the Resource Curse.