A giant Afghan iron ore deposit may provide hope for the prosperity of the country, but the Afghan government is not able to ensure the mine is managed properly and profiteering warlords could spark further violence, a graft watchdog said on Sunday.

The Hajigak project, which straddles the central provinces of Bamiyan, Parwan and Wardak, has deposits of 2 billion tones with an estimated worth of $350 billion and is described by the Afghan government as Asia's largest unmined iron deposit.