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Status: 08/17/2021 3:26 p.m.
Iron, copper, lithium, gold: Afghanistan is rich in natural resources. It is estimated to be worth several trillion dollars. After the Taliban came to power, China and other countries are now hoping for access to the raw materials.
By Lothar Gries, tagesschau.de
David Petraeus, former commander in chief of the US troops in Afghanistan, already raved about the “breathtaking” raw material deposits of the barren country eleven years ago. The stocks of copper, lithium, iron, gold and cobalt were sufficient to make the country, which was torn by war and civil war, a leading supplier of raw materials.
Much of the country has not yet been investigated
The hopes of the general and those of the country’s elites were not fulfilled, as the ongoing fighting with the Taliban and the country’s political instability prevented an economically viable and sensible exploitation of natural resources. They were once discovered by the Russian occupiers, who later shared their findings with the Americans. According to the US geology authority USGS, however, 70 percent of the area of Afghanistan is still unexplored.
After the withdrawal of the USA and its Western allies, the governments of other states now see their chance to reach for the country’s coveted raw materials. China in particular is positioning itself and offering itself to the new rulers in Kabul as a helper in the crisis. In Iran, India and Turkey, too, Afghan natural resources arouse desires.
As much lithium as in Bolivia
US geologists estimate that Afghanistan has three trillion dollars worth of raw materials. According to the US media, lithium reserves as large as those in Bolivia, the world’s largest supplier of this raw material, lie dormant in the country’s soils. It has the potential to become the “Saudi Arabia for lithium”, quoted the New York Times ten years ago from an internal report by the US Department of Defense. Lithium is used in rechargeable batteries such as those used in cell phones, laptops and electric cars.
The iron and copper veins are also apparently huge. After that, two billion tons of copper ore, but also gold and coal as well as rich deposits of rare earths lie dormant in the country’s soils. In addition, 1.6 billion barrels of crude oil are suspected to be underground. Enough to make the discoveries the backbone of the Afghan economy and allow the country to become a leading commodity exporter, according to US experts.
Lack of infrastructure
In its last report on Afghanistan, the American geological authority expressed skepticism that this could also succeed because the country – regardless of the unstable security situation – does not have the necessary infrastructure. There is neither a functioning mining industry nor the roads or railways necessary for exports. It would be extremely costly to lift the raw materials and then move them out of the country, according to the USGS.
The Chinese also recently discovered how difficult it is to work in the country. Since July 2015, the state-owned mining company Metallurgical Corp. of China (MCC) in talks with the government in Kabul to secure the rights to the Aynak copper mine located 35 kilometers south of the capital. Although the first contracts were in place, they were terminated by the government in 2016. Since then, the project has been on hold, according to the USGS. Nothing has been funded yet. Apparently these are gigantic deposits.
700 million tons of ore are said to be in Aynak, mainly malachite, with a copper content that exceeds that of the Chilean mines. If the Chinese manage to get in touch with the Taliban and still reach an agreement, it would be a great success for the government in Beijing. According to experts, the withdrawal of the Americans offers the Chinese another opportunity: They can now try again to connect Afghanistan to the New Silk Road.
New railway line planned
The neighboring countries Uzbekistan and Pakistan are also interested in an efficient and stable connection with Afghanistan. According to the English-language newspaper “Japan Times”, there are considerations to build a continuous rail link from Termez on the Afghan-Uzbek border to the Pakistani city of Peshawar – via Mazar-i-Sharif and Kabul in Afghanistan. The railroad could transport up to 20 million tons of freight per year. The section from Termez to Mazar-i-Sharif, built by Uzbekistan, is already in operation. However, the remaining 573 kilometers to Peshawar are problematic. Because they have to cross the Hindu Kush mountains, whose passes are more than 3500 meters above sea level and can only be overcome by means of a tunnel. Such a project would cost billions of dollars and take many years to complete.
The Russians would also like to do business in Afghanistan. The state gas company Gazprom has been trying for years to develop the gas fields on the Afghan-Turkmen border. Furthermore, three Russian hydropower plants have been planned for years, which could now be built after the withdrawal of the Americans if the new rulers are ready to talk to the former occupiers.