"With
the Taliban running the city right now, all the government offices are
closed. The situation is very tense and scary here."
"I
was in the Ministry of Foreign Affairs building at the time [the
Taliban] entered the city. There was chaos and traffic jams and
everybody was running to his or her home, and the situation got very
tense."
"I
can say that right now, probably because of the relationship with the
Taliban, [the Russians] might be interested in this [metals mining]
sector. Bear in mind that the Russians were the first who did surveys of
all these mines in the 1970s when they invaded the country."
"During
the past 20 years, the Taliban and some warlords have been exploiting
these resources illegally, and they have been working on small mines."
"But
major ones like rare earth elements and lithium will be very difficult
for them to exploit.The question is how the Taliban will run the
government [and] how they
will contribute to the economy. How can they exploit these resources?
That’s impossible for the Taliban."
"Right now, the major interested power is China, given the Chinese
relationship with Pakistan, and then Pakistan’s influence on the
Taliban. China will be very interested in exploiting these
resources."
Ahmad Shah Katawazai, Ministry of Foreign Affairs bureaucrat, Kabul, Afghanistan
|
A general view of Mes Aynak valley, some 40 kilometers southwest of Kabul, Afghanistan.
(AP) |
"Many of the mineral deposits are of world-class size and tenor."
"[Afghanistan
has] abundant mineral resources, but modern technical data and
information are necessary if they are to be developed successfully."
"Afghanistan
might be far removed from being able to sustainably develop its mining
sector, however, owing to several factors, such as deterioration of the
security situation, political uncertainty, and insufficient
infrastructure."
U.S. Geological Survey
"...Such
a program was always considered in the context of having a government
in Kabul that respected basic principles of representative governance,
human rights, rule of law. That is not the case with the return of the
Taliban to power."
"Given
China's stranglehold on the [rare-earth elements] market ... and the
West's commitment in blood and treasure to Afghanistan -- allowing China
to stroll in and harvest Afghanistan's rare-earth riches seems both
unwise and unfair. But the West's options are limited."
Alan Dowd, senior fellow, Fraser Institute
|
A local laborer in 2013 helping to excavate part of the mountaintop
copper works above the ancient city at Mes Aynak in Afghanistan, which
sits on the old Silk Road trading route connecting China and India with
the Mediterranean. Matthew C. Rains/MCT/Newscom |
Foreign
Affairs Ministry bureaucrats in Kabul indulged in high-level
discussions focusing on the Afghan government's near future following
the U.S. withdrawal; ministry officials forecasting a six-month period
before an interim government would be formed. And then, the Taliban
marched into the capital city, and President Ashraf Ghani's government
along with its 300,000-strong army vanished into the woodwork.
Ahmad
Shah Katawaza feels himself still "technically" an employee of the
country's Ministry of Foreign Affairs, involved in those high-level
discussions, at a time when the anticipated vacuum following the U.S.
withdrawal was suddenly filled thanks to the Taliban. The immediate
aftereffect of the chaos and disruption of normal life saw Taliban
soldiers on the streets and everywhere fears of violence.
In
the past 20 years under Western tutelage in good governance and
democracy, Afghanistan's culture of corruption went on undisturbed at
every level of government and civil life under the veneer of
Western-style democracy. But with it came a level of freedom never known
before in a fundamentalist culture of rigid Islamist sharia law,
brought to a fine art of repression and mismanagement and inequality
under the Taliban. And they have returned with a familiar script.
This
is a country with vast natural resources that have never been
exploited, and those resources now attract the attention of countries
that are amenable to Taliban rule; Iran, Turkey, Russia and China. And a
cash-strapped Islamic Emirate of Afghanistan may look to its friends in
China and Russia to help fund its Islamist regime through the
development of its lithium, rare earths and other metals, resources
which it has in abundance while scarce in many other parts of the world.
This
is a legendarily impoverished and war-torn country whose rich stores of
valuable natural resources have never been exploited. Its abundance of
coal, natural gas, copper, lithium, gold, iron ore, bauxite and
rare-earth mineral reserves speak of great, untapped wealth. Rare earth
minerals in particular are a strategic resource, hugely attractive to
China planning to corral and control the rare and valuable resources.
China
itself produces some 85 percent of these minerals used in rechargeable
batteries for electric and hybrid vehicles, advanced ceramics,
computers, cellphones and other vital electronics. A U.S. study
highlights Afghanistan's resources, valued at about $1 to $3 trillion,
according to the Afghan Ministry of Mines and Petroleum. But not so
fast; the country lacks stability and infrastructure which makes is
problematical to see foreign investors willing to risk venturing into
the country as a profitable enterprise.
Afghanistan's
rugged and remote terrain represents yet another roadblock to
development which, added to the security situation, lack of
infrastructure required to haul minerals to global markets alongside
rampant corruption and what seems hugely attractive at first glance,
merits a second and a third assessment. Yet the reality is that those
mineral resources could contribute significantly to economic growth in
the country if it was possible to develop their extraction efficiently.
Few
Western investors would take the leap with the Taliban in power and
from that source there would be "zero interest". China and Russia can be
guaranteed to have fewer scruples and fewer fears of losing a promising
investment in a country ruled by diehard Islamist functionaries with
whom they would have no trouble getting along. China has demonstrated
amply its penchant and purpose in investing heavily in countries with
natural resources begging to be exploited.
The
global electric-vehicle boom that China is eager in cornering the
market on, with production of batteries dependent on lithium, will
readily see the Taliban recognizing an opportunity and allowing China
permission to get on with its investment, building the required
infrastructure, and maintaining efficient extraction of the minerals the
modern world is being built upon. A situation where the country with 47
percent poverty levels can hope to raise its standard of economic
self-sufficiency.
The
pledge of $13 billion from international donors in grants to
Afghanistan's development and reforms of last November is unlikely to be
carried through at this juncture, to benefit the Taliban. The
International Monetary Fund, preparing to transfer close to $150 million
of a $370 million credit facility will be set aside, frozen in
reflection of Taliban rule which most countries will not recognize as
secure and legitimate.
Afghanistan's
central bank with 22 tonnes of gold stored at the Federal Reserve Bank
in New York, has been frozen. Its international reserves of $9.8 billion
in cash, gold and other instruments will be closed to the Taliban
wishing to withdraw any of it for immediate use. According to Mr.
Katawazai, the Afghan government and Metallurgical Corp. of China Ltd.
were negotiating terms for a lease to develop Afghanistan's largest
copper mine, with reserves of an estimated 6 million tonnes.
Goodbye
United States of America, NATO countries, hello China and Russia,
Afghanistan's Islamic Emirate is open and ready for business.
|
An Afghan man holds a small piece of gold, prospected from the site of a proposed Qara Zaghan mine. |
"Why
can't the civil service of distressed nations be adequately funded?
After all, many countries which receive aid have extensive natural
resources. The answer is that these valuable commodities tend to be
contracted out to extractive industries, often foreign."
"Contracts
for the extraction of resources such as petroleum or minerals are not
disclosed to the public, so the industry and their procedures remain
highly opaque ... massive diversions of funds means that usable domestic
revenues on the books is a fraction of its potential."
Afghan President Ashraf Ghani; Fixing Failed States: A Framework for Rebuilding a Fractured World