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Can Afghanistan Satisfy Tech Industries' Insatiable Appetite For Rare Earths?

RiazHaq

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Afghanistan is rich! The world's "poorest country" is known to have trillions of dollars worth of rare earths and other minerals buried underground. Rare earths are essential for the global supply chain of the technology industry. They are considered a "critical resource" for US national security. A US Defense Department report has described Afghanistan as "Saudi Arabia of Lithium". Pakistan, too, is believed to be rich in rare earths. Peace and security are key to unlocking the potential mineral riches in both Afghanistan and Pakistan. That is where both nations need to focus for a brighter future for their peoples.

Rare earth elements (REEs) are a group of 15 elements referred to as the lanthanide series in the periodic table of elements. Scandium and yttrium, while not true REEs, are also included in this categorization because they exhibit similar properties to the lanthanides and are found in the same ore bodies. REEs are key components in many electronic devices that we use in our daily lives, as well as in a variety of industrial applications, according to the Natural Resources of Canada website.



Rare Elements in the Periodic Table


Rare earth elements go into a variety of industrial applications, including electronics, clean energy, aerospace, automotive and defense. Permanent magnets alone account for 38% of total forecasted demand for rare earths. Rapid growth in Lithium-Ion batteries for electric vehicles (EVs) represents another major opportunity for Afghanistan. The Chinese appear ready to invest billions of US dollars in Afghanistan to extract this wealth. The extension of the China Pakistan Economic Corridor (CPEC) infrastructure into Afghanistan can facilitate the export of these minerals through Pakistani ports in Gwadar and Karachi.

The Afghan mineral wealth was first discovered and mapped by Russian geologists during the Soviet occupation of the country in the 1980s. These maps were used by American geologists from the US Geological Survey in 2010 to conduct aerial surveys using P-3 Orion naval patrol aircrafts equipped with sensors. A US Defense Department report written soon after this discovery called Afghanistan "Saudi Arabia of Lithium".

With the Taliban request to join China Pakistan Economic Corridor (CPEC), China appears to be the leading candidate to win mining rights for rare earths in Afghanistan. Already, China has acquired rights to develop copper mining at Aynak Copper Field in Afghanistan. Back in 2007, China Metallurgical Group agreed to invest billions of dollars in the project and related infrastructure development -- including the construction of a coal-fired electrical power plant and what would be Afghanistan's first freight railway, according to a Radio Free Europe report. Geologists estimate that Aynak is the world's largest undeveloped copper field.

Pakistan's Balochistan province, too, is believed to be rich in rare earth elements. Here is how an expert who asked not to be named explained the mining potential in Balochistan:

"The Pegmatite rock that covers much of Balochistan (and other parts of Pakistan as well) has several different gems, in it which have been mined for a long time. These are easy to visualize as they differ in color from the rest of the rock, and can be removed with a small geologist's hammer. Pegmatite, though, also contains uranium which can be separated using a Geiger Counter, and rare metals and rare earths. Some of these like Lithium can be separated relatively easily. Others like Samarium and Dysprosium are vastly more difficult to separate because you need X-Ray equipment to help identify them. Also, their presence is very small - that is why they are classed as "rare." The presence of many of these metals was not known to science until recently and until the Japanese began to use them in electronics, hardly any effort was made to mine them. Now, of course, they are all the rage because they have been found especially useful in the latest "green" generation equipment as well as in defense and other applications. Indeed, until China banned their sale to Japan, no one really even bothered about them - it suited the Japanese to remain quiet as they were getting very good prices for these resources from an unaware Chinese, and the same thing is now happening in other parts of the world, in Pakistan in this case. Much of the testing that is involved here is difficult and requires very advanced technical equipment, and even methods like gas spectrometry etc may not help identify materials that exist in extremely small percentages in soil or rock. In India for example, some of these metal reserves were not known until the USGS first and then the Russians helped analyze soil and rocks across the country. If nothing else, the Indians formed a government owned company called Indian Rare earths Limited which comes under the Atomic Energy Commission and is directly under the Prime Minister of India. They do seem to have handled the conservation and exploitation of these reserves far better than is being done in Pakistan."

Peace and security are key to unlocking the potential mineral riches in both Afghanistan and Pakistan. That is where both nations need to focus on for a brighter future for their peoples.

Related Links:
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South Asia Investor Review

Rare Earths in Pakistan?

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Brief History of Pakistan Economy

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History of Pakistan Business and Industry

CPEC Financing: Is China Ripping Off Pakistan?

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Riaz Haq's YouTube Channel

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RiazHaq

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Oct 31, 2009
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