New Afghanistan Mineral Discovery Could Transform Economy

Until now, the Afghanistan economy has been driven in large part by the poppy crop…which yields such world-wide fan favorites as opium, heroin and a host of other illicit substances.
But now…things may be changing for the better.
US interests have identified over $1 trillion in natural resources and it could mean significant positive change for this war torn region.
The previously unknown deposits — including huge veins of iron, copper, cobalt, gold and critical industrial metals like lithium — are so big and include so many minerals that are essential to modern industry that Afghanistan could eventually be transformed into one of the most important mining centers in the world, the United States officials believe.
An internal Pentagon memo, for example, states that Afghanistan could become the “Saudi Arabia of lithium,” a key raw material in the manufacture of batteries for laptops and BlackBerrys.
The vast scale of Afghanistan’s mineral wealth was discovered by a small team of Pentagon officials and American geologists. The Afghan government and President Hamid Karzai were recently briefed, American officials said.
But, of course, one wonders what the Taliban will do?
Here’s more…
The corruption that is already rampant in the Karzai government could also be amplified by the new wealth, particularly if a handful of well-connected oligarchs, some with personal ties to the president, gain control of the resources. Just last year, Afghanistan’s minister of mines was accused by American officials of accepting a $30 million bribe to award China the rights to develop its copper mine. The minister has since been replaced.
Endless fights could erupt between the central government in Kabul and provincial and tribal leaders in mineral-rich districts. Afghanistan has a national mining law, written with the help of advisers from the World Bank, but it has never faced a serious challenge.
“No one has tested that law; no one knows how it will stand up in a fight between the central government and the provinces,” observed Paul A. Brinkley, deputy undersecretary of defense for business and leader of the Pentagon team that discovered the deposits.
More as it develops…
UPDATE:
This from commenter davidlosangeles:
That said, this is not really new. All that the USGS did was use maps developed by the USSR during *its* occupation of Afghanistan. The US government has known about these reserves for 20 years. The world economy is in the dumps, there is not really a huge demand for more iron ore deposits over the short term (maybe a decade or two in future things might be different).
I wouldn’t be so sure. Looks like a lot more than just iron has been identified and even though the US used USSR’s maps, that doesn’t mean it had been fully explored. They started in 2006 and just now have been able to estimate what lies beneath.
Regardless, this could be huge for the Afghanistan economy and we all know the Taliban wouldn’t have done anything about it. So the war could have a silver (or iron, or copper, or lithium…) lining after all.
(Photo: NY Times)
















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