During the years 1938–1941, the coal deposits of Karkar–Doodkash were discovered accidentally. Subsequently, rudimentary mining operations commenced on the coal seams that were naturally exposed on the surface. The extracted coal was utilized for domestic heating and to supply fuel for the Baghlan Sugar Factory.
In later years, with the establishment and construction of major industrial plants such as the Ghor Cement Factory, Jangalak, Pul-e-Khumri Textile Factory, and grain silos, the utilization of coal as a key source of energy expanded considerably. Consequently, to achieve technical extraction and higher productivity, electricity and water pipelines were extended to the Karkar–Doodkash mines, and a number of mining machines and technical equipment were procured.
For technical guidance and supervision, experienced engineers from Czechoslovakia, Germany, and the United States collaborated with Afghan engineers. Initially, the Karkar–Doodkash mines operated under an administrative entity known as the Coal Union, which functioned as a budgetary unit.
In 1971 (1350), the North Coal company was established. Field units of the company, known as Mine Directorates, were created in the mining regions of Ashposhta, Dara-e-Suf, Karkar, and Doodkash. Unfortunately, in 1979 (1358), due to the outbreak of imposed wars, the management of the Dara-e-Suf and Ashposhta mines fell out of the enterprise's control. Surface installations were destroyed, and mining machinery and equipment were looted.
From 1979 to 2001 (1358–1380), all activities of the North Coal company were confined to the Karkar and Doodkash mines. Later, the Ahang Dara and Khurd Dara mines were added to the enterprise's organizational structure and brought into production. It is worth noting that, from its inception until 1992 (1371), the enterprise functioned as a non-profitable organization, operating with government subsidies.
Following 1992, as a result of domestic armed conflicts, the North Coal company lost its formal connection with the Ministry of Mines and Petroleum. This situation enabled local strongmen and warlords to conduct unauthorized and non-technical mining operations. Consequently, the enterprise was unable to maintain or safeguard the mines. Revenues from coal sales were not remitted to the government treasury and were instead misappropriated by individuals.
During the period of the Interim Government (up to 2007 / 1386), only minimal royalties were collected from the sale of coal extracted non-technically by local actors from the Dara-e-Suf, Ashposhta, Doab, Kalich, Tala, Barfak, and Nahrin mines. In 2001 (1380), under the directive of the Ministry of Mines and Petroleum, several checkpoints were established along coal transportation routes to collect a small amount of money under the name of 'base price.' However, due to the absence of weighing facilities, the actual quantity of coal transported could not be determined accurately, and the collected revenues lacked transparency.
The non-technical and unauthorized mining operations caused fires and structural damage to the coal seams, resulting in significant losses during extraction. Moreover, such unsafe practices frequently led to mining accidents, causing loss of life among miners, and inflicted severe environmental damage in surrounding areas. The absence of a governmental administrative body and technical staff at the mines further meant that inspection and supervision were not conducted, leading to frequent accidents and fatalities.
Following the Transitional Government period, the Ministry of Mines and Petroleum, taking the prevailing conditions into account, gradually reasserted oversight and began collecting royalties (entitlement fees) from coal sales and depositing them into the state treasury. However, the existing mining system of the enterprise, given the economic and social circumstances, proved ineffective and generated numerous production and accounting challenges.
Accordingly, in line with the economic policy of the Government of Afghanistan, and in order to prevent non-technical and unauthorized mining, coal seam fires, and structural destruction, and to ensure technical exploitation of coal mines, safe working conditions for miners, and enhanced production efficiency, the Ministry of Mines and Petroleum developed and drafted the Production–Commercial Plan of the Northern Coal Enterprise.
This plan, after passing through the relevant administrative channels, was approved by the Council of Ministers of the Islamic Republic of Afghanistan through Resolution No. (8) dated 21 May 2007 (31/02/1386). Initially, the plan was approved for a three-year pilot period (2007–2009 / 1386–1388). Subsequently, its continuation was approved through a series of resolutions by the Economic Committee and the Council of Ministers, as follows:
- Resolution No. (27) dated 20 September 2010 (29/06/1389) — for one year (1389)
- Resolution No. (16) dated 20 August 2011 (29/05/1390) — for the years 1390–1391
- Resolution No. (17) dated 15 July 2013 (24/04/1392) — for the years 1392–1393
- Resolution No. (25) dated 7 March 2016 (17/12/1394) — for the years 1394–1395
Since the approval of this Production–Commercial Plan, all mining operations of the Northern Coal Enterprise have been conducted within its framework and continue to this day.