US discovers $1 trillion mineral deposits in Afghanistan: report

The Daily Times, Pakistan, Tuesday, June 15, 2010

KABUL:

Afghanistan has nearly one trillion dollars in mineral deposits, according to a US study, but there are doubts the war-torn and graft-prone country can manage the windfall offered by the untapped riches.

Afghan President Hamid Karzai said in January the deposits could help the war-ravaged nation become one of the richest in the world, based on preliminary findings of the United States Geological Survey.

The final results, reported in the New York Times on Monday, found previously unknown reserves of lithium, iron, gold, niobium, cobalt and other minerals that the paper said could transform Afghanistan into a global mining hub.

“The natural resources of Afghanistan will play a magnificent role in Afghanistan’s economic growth,” Jawad Omar, spokesman for the country’s ministry of mines and industries, told AFP.

“The past five decades show that every time new research takes place, it shows our natural reserves are far more than what was previously found,” he said. Afghanistan’s potential lithium deposits are as large of those of Bolivia, which currently has the world’s largest known reserves of the lightweight metal, the Times said.

There is an ever-growing demand for lithium, which is used to make batteries for everything from mobile phones and cameras to iPads and laptops. Future growth in electric and hybrid cars could create still more demand.

Afghanistan has so much of the metal that it could become the “Saudi Arabia of lithium”, according to an internal Pentagon memo quoted by the New York Times.

The iron and copper deposits are also large enough to make Afghanistan one of the world’s top producers, US officials said.

“There is stunning potential here,” General David Petraeus, head of the US Central Command, which oversees Afghanistan, told the newspaper. “There are a lot of ifs, of course, but I think potentially it is hugely significant.”

Little has been exploited because the country has been mired in conflict for three decades, and is today embroiled in a vicious insurgency led by the Taliban.

The country would have to find a way of bringing the minerals to markets but its infrastructure is rudimentary, with only one national highway connecting north to south and its ramshackle roads often targeted by Taliban bombs.

Analysts worried the country, hobbled by rampant corruption and a weak central state, was not ready to manage its potential mineral wealth.

“I highly doubt it will be able to either properly manage these resources or use the riches to build a more peaceful and prosperous Afghanistan for all Afghans,” Janan Mosazai, a political analyst, told AFP.

“We have living examples of other countries where natural riches have actually turned into a curse for peace and prosperity for people,” he said, citing Nigeria’s endemic poverty and conflict despite vast oil exports. afp

What could $1 trillion in mineral wealth mean for Afghanistan?

US and Afghan officials estimate $1 trillion in untapped Afghanistan mineral wealth that they say bodes well for the country's economic future. But others are skeptical.

The Christian Science Monitor

By Tom A. Peter, Correspondent / June 14, 2010

Kabul

US and Afghan officials claim to have discovered more than $1 trillion in untapped copper, iron, and lithium deposits in Afghanistan, enough to significantly bolster the future development of the war ravaged country. But there remains skepticism about Afghanistan's mineral wealth, as some critics argue that the extent of un-mined deposits is being inflated to garner support for the war.

Unlike Iraq, Afghanistan is not generally thought of as being rich in natural resources, at least in part because what mineral wealth it has is hard to get out and a long way from a port.

To be sure, Afghanistan has been known to have extensive iron, copper, and gold deposits since at least the late 1960s. The Aynak copper deposit, discovered by the Soviets in the mid 70s but left undeveloped due to war and weak domestic infrastructure, is now being developed by a Chinese company. The Afghan government expects to reap $1 billion a year in taxes and fees from Aynak when it eventually goes into production, though that still appears to be years away, as efforts to build the necessary roads and power plant have been slowed by the war.

Those kind of delays - caused by Taliban attacks, tough winter weather, and dilapidated existing infrastructure -- also make developing mines here more expensive, and are one reason that investment has been held back.

For now, more than 80 percent of Afghans work in agriculture and poppy cultivation still accounts for nearly a quarter of the country's gross domestic product.

Representatives from the US Geological Service, USAID, the Afghan government and the Pentagon released a summary of the country's deposits in 2007 but only completed their assessment of untapped mineral value last December. On Monday, the New York Times reported the team’s findings.

A discovery of resources of this magnitude could help to gain more support for the viability of the war in Afghanistan.

“The mineral industry has the potential to be a significant enabler of self-sufficiency for Afghanistan,” says US Air Force Lt. Col. Todd Vician, a spokesman for the International Security Assistance Force in Afghanistan (ISAF). “It is on of the most important sectors in the country for the economic aspect of Afghanistan’s development.”

Now members of ISAF provincial reconstruction teams will work with local leaders at the provincial and district level to determine what projects are needed to aid in the harvesting of the minerals.

Jill McGivering of the BBC cast suspicion on the timing of the announcement, saying that “at a time of growing despair about Afghanistan and its government, the portrayal of the country as a potential goldmine could help to bolster international resolve and paint the country as a prize worth fighting for.

Accessing most deposits in Afghanistan may prove the biggest hurdle. Presently, there are no roads or railways to potential, meaning that investors will have to develop the necessary infrastructure before they can begin extracting minerals.

“This puts Afghanistan in a position where it can now work on its reconstruction and development with new resources … that if exploited appropriately could incorporate many Afghans into the workforce in their country,” says Thomas Gouttierre, director of the Center for Afghanistan Studies at the University of Nebraska at Omaha. “It helps [those trying to reconstruct the country] to have alternative economies.”

News of Afghanistan's mineral wealth deepens suspicion of US aims

The US mapped out Afghanistan's mineral deposits worth $1 trillion, a new report said, strengthening the suspicion of many Afghans that the US intends to occupy the country and seize its resources.

The Christian Science Monitor

By Ben Arnoldy, Staff writer / June 15, 2010

The Pentagon’s announcement that Afghanistan possesses $1 trillion worth of unexploited minerals will have the unintended consequence of confirming one of the most deeply entrenched conspiracy theories among Afghans.

Many Afghans I have spoken with believe firmly that America wants to permanently occupy the country in order to take Afghan land resources. Even educated Afghans friends who generally support a temporary US presence have told me the same. I had to laugh when one suggested that Americans would want to move to Afghanistan to snatch up Afghan land for homes.

This fear has flourished despite – not because of – American rhetoric. Former Secretary of Defense Donald Rumsfeld famously dismissed the country, saying there weren't any good bombing targets in Afghanistan. President Barack Obama has set a timeline for troops to begin withdrawing.

But Afghans are proud of their country. And, for many Afghans, it makes no sense that the US cannot wrap up the Taliban – so an imperialist land grab becomes a plausible explanation.

Having the Pentagon announce a quiet survey of Afghanistan's is just the "evidence" that will confirm deep suspicions that the US is really there looking for war booty. And that won't help American troops trying to win the trust of a population famous for tiring of invaders.