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Taliban inherits $1 trillion in undeveloped minerals in Afghanistan
Seetao 2021-08-23 09:16
  • Afghanistan is a clean energy country that uses rare earths, and it has been unable toexploit this huge mineral resource for a long time
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The Taliban now holds the keys to an untouched treasure trove of trillions of dollars in minerals, including some that can drive the world's transition to renewable energy, but Afghanistan has long struggled to mine its huge mineral deposits.

Since the Taliban returned to power 20 years after being ousted from power, they have been in financial trouble because the main aid donors stopped supporting Afghanistan. Endless wars and poor infrastructure have prevented the country from mastering the metal that can illuminate its economic destiny. According to a report from the United States Geological Survey (USGS) in January 2021, these resources include bauxite, copper ore, iron ore, lithium ore and rare earths.

Copper is needed to make wires, and as the price soars above US$10,000 per ton, copper has become a hot commodity in 2021. Lithium is a key element in the manufacture of electric car batteries, solar panels and wind farms. According to the International Energy Agency (EA), by 2040, the global demand for lithium will increase by more than 40 times. The author of the book "War on Rare Metals" said that Afghanistan has huge lithium reserves that have not yet been developed.

Afghanistan is also home to rare earths used in the clean energy sector: plutonium, plutonium and anti-plutonium. The US Geological Survey estimates that the country’s untapped mineral resources are $1 trillion, but Afghan officials estimate that this wealth is three times that of Afghanistan.

Afghanistan has done a better job in mining precious stones (such as emeralds and rubies) and semi-precious greens and lapis lazuli, but the company has been plagued by illegal smuggling into Pakistan. Afghanistan also mines talc, marble, coal and iron ore. Although the takeover of the Taliban may deter foreign investors, one country that seems willing to do business with them is China.

The world's second largest economy said that after the Taliban entered Kabul, it was ready to establish "friendly and cooperative relations" with Afghanistan. The state-owned China Metallurgical Corporation was granted the right to lease the giant Mes-Aynak copper deposit for 30 years and mine 11.5 million tons of copper ore in 2007. According to Jiandao.com, the project to mine the world's second largest undeveloped copper deposit has not yet started due to "safety issues."

However, "Global Times" quoted a source in the organization as saying that the organization will consider reopening after the situation stabilizes and obtain international recognition, including the recognition of the Taliban regime by the Chinese government.

Keywords: overseas engineering, international engineering construction, foreign engineering construction news

Ryan Haas, a senior fellow at the Washington Brookings Institution think tank, said in a blog that although Chinese leaders are not enthusiastic about the Taliban takeover, "they will not allow principles to hinder pragmatism." He wrote: The lack of development of the Chinese government's major investment in the Metz-Aynak copper mine shows that it is willing to patiently pursue investment returns.Editor/XuNing

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