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View Full Version : U.S. Identifies Vast Riches of Minerals in Afghanistan



Ramadhan
06-14-2010, 07:54 AM
I wonder if they'd already known about this fact when they were in planning how to attack, invade and occupy Afghanistan?

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http://www.nytimes.com/2010/06/14/wo...o_interstitial


WASHINGTON — The United States has discovered nearly $1 trillion in untapped mineral deposits in Afghanistan, far beyond any previously known reserves and enough to fundamentally alter the Afghan economy and perhaps the Afghan war itself, according to senior American government officials.

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.

While it could take many years to develop a mining industry, the potential is so great that officials and executives in the industry believe it could attract heavy investment even before mines are profitable, providing the possibility of jobs that could distract from generations of war.

“There is stunning potential here,” Gen. David H. Petraeus, commander of the United States Central Command, said in an interview on Saturday. “There are a lot of ifs, of course, but I think potentially it is hugely significant.”

The value of the newly discovered mineral deposits dwarfs the size of Afghanistan’s existing war-bedraggled economy, which is based largely on opium production and narcotics trafficking as well as aid from the United States and other industrialized countries. Afghanistan’s gross domestic product is only about $12 billion.

“This will become the backbone of the Afghan economy,” said Jalil Jumriany, an adviser to the Afghan minister of mines.

American and Afghan officials agreed to discuss the mineral discoveries at a difficult moment in the war in Afghanistan. The American-led offensive in Marja in southern Afghanistan has achieved only limited gains. Meanwhile, charges of corruption and favoritism continue to plague the Karzai government, and Mr. Karzai seems increasingly embittered toward the White House.

So the Obama administration is hungry for some positive news to come out of Afghanistan. Yet the American officials also recognize that the mineral discoveries will almost certainly have a double-edged impact.

Instead of bringing peace, the newfound mineral wealth could lead the Taliban to battle even more fiercely to regain control of the country.

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.

At the same time, American officials fear resource-hungry China will try to dominate the development of Afghanistan’s mineral wealth, which could upset the United States, given its heavy investment in the region. After winning the bid for its Aynak copper mine in Logar Province, China clearly wants more, American officials said.

Another complication is that because Afghanistan has never had much heavy industry before, it has little or no history of environmental protection either. “The big question is, can this be developed in a responsible way, in a way that is environmentally and socially responsible?” Mr. Brinkley said. “No one knows how this will work.”

With virtually no mining industry or infrastructure in place today, it will take decades for Afghanistan to exploit its mineral wealth fully. “This is a country that has no mining culture,” said Jack Medlin, a geologist in the United States Geological Survey’s international affairs program. “They’ve had some small artisanal mines, but now there could be some very, very large mines that will require more than just a gold pan.”

The mineral deposits are scattered throughout the country, including in the southern and eastern regions along the border with Pakistan that have had some of the most intense combat in the American-led war against the Taliban insurgency.

The Pentagon task force has already started trying to help the Afghans set up a system to deal with mineral development. International accounting firms that have expertise in mining contracts have been hired to consult with the Afghan Ministry of Mines, and technical data is being prepared to turn over to multinational mining companies and other potential foreign investors. The Pentagon is helping Afghan officials arrange to start seeking bids on mineral rights by next fall, officials said.

“The Ministry of Mines is not ready to handle this,” Mr. Brinkley said. “We are trying to help them get ready.”

Like much of the recent history of the country, the story of the discovery of Afghanistan’s mineral wealth is one of missed opportunities and the distractions of war.

In 2004, American geologists, sent to Afghanistan as part of a broader reconstruction effort, stumbled across an intriguing series of old charts and data at the library of the Afghan Geological Survey in Kabul that hinted at major mineral deposits in the country. They soon learned that the data had been collected by Soviet mining experts during the Soviet occupation of Afghanistan in the 1980s, but cast aside when the Soviets withdrew in 1989.

During the chaos of the 1990s, when Afghanistan was mired in civil war and later ruled by the Taliban, a small group of Afghan geologists protected the charts by taking them home, and returned them to the Geological Survey’s library only after the American invasion and the ouster of the Taliban in 2001.

“There were maps, but the development did not take place, because you had 30 to 35 years of war,” said Ahmad Hujabre, an Afghan engineer who worked for the Ministry of Mines in the 1970s.

Armed with the old Russian charts, the United States Geological Survey began a series of aerial surveys of Afghanistan’s mineral resources in 2006, using advanced gravity and magnetic measuring equipment attached to an old Navy Orion P-3 aircraft that flew over about 70 percent of the country.

The data from those flights was so promising that in 2007, the geologists returned for an even more sophisticated study, using an old British bomber equipped with instruments that offered a three-dimensional profile of mineral deposits below the earth’s surface. It was the most comprehensive geologic survey of Afghanistan ever conducted.

The handful of American geologists who pored over the new data said the results were astonishing.

But the results gathered dust for two more years, ignored by officials in both the American and Afghan governments. In 2009, a Pentagon task force that had created business development programs in Iraq was transferred to Afghanistan, and came upon the geological data. Until then, no one besides the geologists had bothered to look at the information — and no one had sought to translate the technical data to measure the potential economic value of the mineral deposits.

Soon, the Pentagon business development task force brought in teams of American mining experts to validate the survey’s findings, and then briefed Defense Secretary Robert M. Gates and Mr. Karzai.

So far, the biggest mineral deposits discovered are of iron and copper, and the quantities are large enough to make Afghanistan a major world producer of both, United States officials said. Other finds include large deposits of niobium, a soft metal used in producing superconducting steel, rare earth elements and large gold deposits in Pashtun areas of southern Afghanistan.

Just this month, American geologists working with the Pentagon team have been conducting ground surveys on dry salt lakes in western Afghanistan where they believe there are large deposits of lithium. Pentagon officials said that their initial analysis at one location in Ghazni Province showed the potential for lithium deposits as large of those of Bolivia, which now has the world’s largest known lithium reserves.

For the geologists who are now scouring some of the most remote stretches of Afghanistan to complete the technical studies necessary before the international bidding process is begun, there is a growing sense that they are in the midst of one of the great discoveries of their careers.

“On the ground, it’s very, very, promising,” Mr. Medlin said. “Actually, it’s pretty amazing.”
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Maryan0
06-14-2010, 02:36 PM
I just read this on the news. Apparently Afghanistan is also an important route to transport oil.
Salam
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Vito
06-14-2010, 04:46 PM
Mission accomplished
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aadil77
06-14-2010, 04:51 PM
format_quote Originally Posted by -Kai-
Mission accomplished
yep they've secured the drug business, the oil pipeline, prevented the 'caliphate' from emerging and now they're gonna steal minerals belonging to muslims

nothing unusual coming from a nation that has stolen whole countries before
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Argamemnon
06-14-2010, 09:45 PM
The U.S. had planned to attack Afghanistan long before 9/11. It's all about pipelines and natural resources.
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Zafran
06-15-2010, 01:02 AM
salaam

we all knew they wouldn fight a war that wouldnt make money for them.

peace
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Ramadhan
06-18-2010, 09:36 AM
Apparently the value of the untapped minerals in Afghanistan is now estimated at USD 3 TRILLIONS!! far higher higher than the previous conervative estimate at USD 1 trillion.


From http://finance.yahoo.com/news/Afghan...88522.html?x=0


Afghan mineral wealth may be at least $3 trillion
Afghanistan gears up to award contracts for vast iron ore deposits in peaceful province



An Afghan journalist walks by precious stones on display as he attends a press conference of Afghan Minister of Mines Wahidullah Shahrani in Kabul, Afghanistan on Thursday, June 17, 2010. An Afghan mining official says the untapped minerals in the war-torn country are worth at least $3 trillion, triple a U.S. estimate. (AP Photo/Musadeq Sadeq)
Deb Riechmann and Amir Shah, Associated Press Writers, On Thursday June 17, 2010, 11:24 pm EDT

KABUL, Afghanistan (AP) -- Afghanistan is gearing up to award contracts to mine one the world's largest iron ore deposits buried in a peaceful province of the war-torn nation that has at least $3 trillion in untapped minerals, the country's top mining official said Thursday.

Geologists have known for decades about Afghanistan's vast deposits of iron, copper, cobalt, gold and other prized minerals, but a U.S. Department of Defense briefing earlier this week put a startling, nearly $1 trillion price tag on the reserves.

Afghanistan's Minister of Mines Wahidullah Shahrani called that a conservative estimate. He said he's seen geological assessments and industry reports estimating the nation's mineral wealth at $3 trillion or more.

For Afghanistan, a violent, landlocked country with virtually no exports, it is a potential windfall, although formidable obstacles remain including lack of investment, infrastructure and adequate security in most of the nation.

"The ministry has been working closely with the international organizations, including the World Bank, the U.S. Geological Survey and the international mining and finance community for some time to ensure all of the Afghan people benefit from our rich natural resources for decades to come," he said.

Shahrani plans to travel to Britain next week to present 200 foreign businessmen with information about the estimated 2 billion tons of iron ore at Hajigak in Bamiyan province, where the Taliban and other insurgents have no significant presence. The project is to be bid on this fall with contracts awarded late this year or early next year, he said.

Critics of the war in Afghanistan have been skeptical that the dollar amount of the country's untapped minerals was being promoted at a time when violence is on the upswing and the international community is hungry for positive developments in the nearly 9-year-old war.

They argue that if impoverished Afghanistan is seen as having a bright economic future, it could help foreign governments persuade their war-fatigued publics that securing the country is worth the fight and loss of troops.

But Shahrani insisted that the release of the information, first reported earlier this week by The New York Times, followed months of work to assess the mineral deposits, sometimes with the aid of data compiled by the former Soviet Union when it was fighting in Afghanistan.

A. Rahman Ashraf, senior adviser to the minister of mines, said that during decades of conflict, an Afghan geologist safeguarded data about the mineral reserves at home. He said the geologist, who has died, gave the information back to the government in 2002 and that since then, it has been used to help make modern assessments of the deposits.

Shahrani said the Ministry of Mines and the U.S. Geological Survey had been sharing information for months.

"We were just waiting for the exchange of information from Washington to Kabul," Shahrani said.

Shahrani added that the ministry recently completed a business plan to restructure, reform and modernize the ministry and improve oversight to international standards. He said those efforts coupled with new minerals and hydrocarbon laws will work to improve the transparency and efficiency of mining in the nation.

Still, without increased security and massive investment to mine and transport the minerals, it could take years for Afghanistan to bank the rewards. A rail line, for instance, is needed before any iron ore could be transported from Bamiyan. And there's always the potential that such a discovery could bring unintended consequences, such as corruption and competition among nations for access to the resources.

In November, two U.S. officials familiar with intelligence reports alleged that Afghanistan's former minister of mines, Mohammad Ibrahim Adel, accepted $20 million after a $3 billion contract to mine copper was awarded in late 2007 to China Metallurgical Group Corp. The former minister has denied having taken any bribes and said the contract went through all legal channels.

Aynak, a former al-Qaida stronghold 21 miles (35 kilometers) southeast of Kabul, is thought to hold one of the world's largest unexploited copper reserves. Mining the copper could produce 4,000 to 5,000 Afghan jobs in the next five years and hundreds of millions of dollars a year to the government treasury, Shahrani said.

Craig Andrews, a lead mining specialist for the World Bank, said Aynak was expected to start producing copper within two to three years. Production of iron ore at Hajigak could begin in five to seven years, and possibly sooner, he said.

Andrews noted that studies show that every mining job creates five to 10 other jobs.

"Clearly, these mines will have a huge economic stimulus effect on not only the national economy, but the region in which they are located in," Andrews said. "I think when people have jobs and they have an income, they have a stake in the future and the future does not include insecurity. I think once the communities are anchored in an economy that gives them jobs money and income they would be less inclined to support the Taliban or other insurgent groups."

He said the government, however, must guard against raising the expectations of the Afghan public.

Otherwise, "people are going to go off and pick up a rock and think that they can go to the bank," he said. "Unfortunately the business doesn't operate that way. It takes a lot longer."
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