Afghanistan's mining minister has announced that Indian and Chinese bidders are front runners for mining iron ore and oil deposits in the country, ahead of western firms who showed hesitations in investing in the war-torn nation.

Afghanistan is estimated to have gold, copper, iron ore and precious stones to oil, gas and rare earth minerals worth as much as three trillion dollars. These huge resources have attracted bidders from energy hungry India and China while western firms appear concerned over the security situation in the face of withdrawal of US-led forces.

Afghan Minister of Mines Wahidullah Shahrani said on Wednesday that two Indian bidders have emerged as "the most potential companies" among a short list of six to win a contract for the vast Hajigak iron ore project in early November. He said that one is an individual company and the other is a consortium involving Mittal family.

Shahrani also said that the rights to extract oil and gas in northern Afghanistan's Amu Darya field will most likely be awarded to Chinese firms. "Those companies that get into Afghanistan early will have good opportunities," the minister added.

Ramon Mushrief, Interim President at the European Union Chamber of Commerce in Afghanistan said Asian companies backed by their government's can afford to take risks and the EU firms are unable to take such risks upon themselves.