12:34 30/08/2021
Afghanistan's underground resources in the eyes of international powers
Now that they took power for the second time, the Taliban have access to the important treasures of the country. In a 2010 report, American military experts and geologists estimate that Afghanistan, one of the poorest countries in the world, has land assets worth 1.000.000.000.000 US Dollars, 1 billion Dollars or 850 billion Euros.
Iron, copper, cobalt, lithium and rare earths are the main assets. In the following years, such assets remained unused due to the continuous violence in the country. Meanwhile, the value of these minerals has increased excessively, also due to the global trend of proclimatic energy. According to a 2017 Afghan government report, mineral wealth reaches $3 billion, but this includes only fossil materials.
Lithium, which is needed for the production of batteries for electric vehicles, smartphones or laptops, is in high demand. The demand these days has increased by 20%. According to a Pentagon document, Afghanistan is meanwhile the "Saudi Arabia of lithium" and estimates that the assets are as large as those of Bolivia, which has the largest reserves in the world. Even the demand for copper has increased in the time of economic recovery, when the corona pandemic is coming to an end. Last year the demand for copper increased by 43%. More than a third of Afghanistan's future wealth could be achieved through expanding copper mining.
As of now, China and Pakistan are ready to do business with the radical-Islamic Taliban, thus wanting to emphasize even more the failure of the US and Europe in the Hindu Kush. As the producer of half of the world's industrial goods, China has a great hunger for all raw materials. Beijing, which is the largest investor in Afghanistan, is leading the race to establish an efficient mineral exploitation system.
"The control of the Taliban comes at a time when the supply of minerals in the near future is expected to stagnate and China is in great need of it. China is ready to extract these minerals," Michael Tanchum, from the Institute for Security Policy in Austria, told Deutsche Welles from Afghanistan.
Metallurgical Corporation of China, MCC one of the largest Chinese conglomerates has secured mineral extraction rights in Afghanistan's Logar province for 30 years.
Afghanistan can benefit from Beijing's Belt and Road Initiative (BRI) known as the new Silk Road. The spread of violence from Afghanistan to other Central Asian countries puts the pipeline network at risk, causing gas and oil supply problems for China. On the other hand, Beijing fears that this divided country may turn into an area where the Muslim Uyghur minority retreats, and its economic interests may be jeopardized by the continuation of violence in Afghanistan.
Neighboring Pakistan could also benefit from Afghanistan's mineral extraction. The government in Islamabad, which supported the Taliban's rise to power in 1996, has ties to this group. Pakistan is also among the main beneficiaries of the new Silk Road project. Afghanistan's new rulers still have a long and difficult road ahead if they want to exploit the country's riches. Setting up an efficient mining system in a failed state would take years.
Klan News
Source of information @TvKlan: Read more at: www.botasot.al
