U.S. Identifies Vast Mineral Riches in Afghanistan

[ahsanraza81]

U.S. Identifies Vast Mineral Riches in Afghanistan

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.

 

[roadrunner]

this is old news i think. i do think afghanistan should excavate these minerals/mines on their own.

 

[Al Bhatti]

Old news.

My request to everyone, when posting or quoting an article, please mention the date of the article.

Any how let us hope the Afghanistan Government will utilize the resources and serve its citizens (which i doubt) better than Pakistani Government "utilizing the national resources and serving it's citizens" (actually the Pakistani Government does not provide any service at all the poor public pays for everything).

 

[OrionHunter]

Why do you think Uncle Sam is in Afghanistan? No prizes for guessing. Iraq was for oil, remember?

 

[asad71]

Bad omen for any nation to discover precious minerals / oil/ gas.

 

[ahsanraza81]

America's Pipe Dream

A pro-western regime in Kabul should give
the US an Afghan route for Caspian oil

"Is there any man, is there any woman, let me say any child here," Woodrow Wilson asked a year after the first world war ended, "that does not know that the seed of war in the modern world is industrial and commercial rivalry?" In 1919, as US citizens watched a shredded Europe scraping up its own remains, the answer may well have been no. But the lessons of war never last for long.

The invasion of Afghanistan is certainly a campaign against terrorism, but it may also be a late colonial adventure. British ministers have warned MPs that opposing the war is the moral equivalent of appeasing Hitler, but in some respects our moral choices are closer to those of 1956 than those of 1938. Afghanistan is as indispensable to the regional control and transport of oil in central Asia as Egypt was in the Middle East.

Afghanistan has some oil and gas of its own, but not enough to qualify as a major strategic concern. Its northern neighbours, by contrast, contain reserves which could be critical to future global supply. In 1998, Dick Cheney, now US vice-president but then chief executive of a major oil services company, remarked: "I cannot think of a time when we have had a region emerge as suddenly to become as strategically significant as the Caspian." But the oil and gas there is worthless until it is moved. The only route which makes both political and economic sense is through Afghanistan.

Transporting all the Caspian basin's fossil fuel through Russia or Azerbaijan would greatly enhance Russia's political and economic control over the central Asian republics, which is precisely what the west has spent 10 years trying to prevent. Piping it through Iran would enrich a regime which the US has been seeking to isolate. Sending it the long way round through China, quite aside from the strategic considerations, would be prohibitively expensive. But pipelines through Afghanistan would allow the US both to pursue its aim of "diversifying energy supply" and to penetrate the world's most lucrative markets. Growth in European oil consumption is slow and competition is intense. In south Asia, by contrast, demand is booming and competitors are scarce. Pumping oil south and selling it in Pakistan and India, in other words, is far more profitable than pumping it west and selling it in Europe.

As the author Ahmed Rashid has documented, in 1995 the US oil company Unocal started negotiating to build oil and gas pipelines from Turkmenistan, through Afghanistan and into Pakistani ports on the Arabian sea. The company's scheme required a single administration in Afghanistan, which would guarantee safe passage for its goods. Soon after the Taliban took Kabul in September 1996, the Telegraph reported that "oil industry insiders say the dream of securing a pipeline across Afghanistan is the main reason why Pakistan, a close political ally of America's, has been so supportive of the Taliban, and why America has quietly acquiesced in its conquest of Afghanistan". Unocal invited some of the leaders of the Taliban to Houston, where they were royally entertained. The company suggested paying these barbarians 15 cents for every thousand cubic feet of gas it pumped through the land they had conquered.

For the first year of Taliban rule, US policy towards the regime appears to have been determined principally by Unocal's interests. In 1997 a US diplomat told Rashid "the Taliban will probably develop like the Saudis did. There will be Aramco [the former US oil consortium in Saudi Arabia] pipelines, an emir, no parliament and lots of Sharia law. We can live with that." US policy began to change only when feminists and greens started campaigning against both Unocal's plans and the government's covert backing for Kabul.

Even so, as a transcript of a congress hearing now circulating among war resisters shows, Unocal failed to get the message. In February 1998, John Maresca, its head of international relations, told representatives that the growth in demand for energy in Asia and sanctions against Iran determined that Afghanistan remained "the only other possible route" for Caspian oil. The company, once the Afghan government was recognised by foreign diplomats and banks, still hoped to build a 1,000-mile pipeline, which would carry a million barrels a day. Only in December 1998, four months after the embassy bombings in east Africa, did Unocal drop its plans.

But Afghanistan's strategic importance has not changed. In September, a few days before the attack on New York, the US energy information administration reported that "Afghanistan's significance from an energy standpoint stems from its geographical position as a potential transit route for oil and natural gas exports from central Asia to the Arabian sea. This potential includes the possible construction of oil and natural gas export pipelines through Afghanistan". Given that the US government is dominated by former oil industry executives, we would be foolish to suppose that such plans no longer figure in its strategic thinking. As the researcher Keith Fisher has pointed out, the possible economic outcomes of the war in Afghanistan mirror the possible economic outcomes of the war in the Balkans, where the development of "Corridor 8", an economic zone built around a pipeline carrying oil and gas from the Caspian to Europe, is a critical allied concern.

American foreign policy is governed by the doctrine of "full-spectrum dominance", which means that the US should control military, economic and political development worldwide. China has responded by seeking to expand its interests in central Asia. The defence white paper Beijing published last year argued that "China's fundamental interests lie in ... the establishment and maintenance of a new regional security order". In June, China and Russia pulled four central Asian republics into a "Shanghai cooperation organisation". Its purpose, according to Jiang Zemin, is to "foster world multi-polarisation", by which he means contesting US full-spectrum dominance.

If the US succeeds in overthrowing the Taliban and replacing them with a stable and grateful pro-western government and if the US then binds the economies of central Asia to that of its ally Pakistan, it will have crushed not only terrorism, but also the growing ambitions of both Russia and China. Afghanistan, as ever, is the key to the western domination of Asia.

We have argued on these pages about whether terrorism is likely to be deterred or encouraged by the invasion of Afghanistan, or whether the plight of the starving there will be relieved or exacerbated by attempts to destroy the Taliban. But neither of these considerations describes the full scope and purpose of this war. As John Flynn wrote in 1944: "The enemy aggressor is always pursuing a course of larceny, murder, rapine and barbarism. We are always moving forward with high mission, a destiny imposed by the Deity to regenerate our victims while incidentally capturing their markets, to civilise savage and senile and paranoid peoples while blundering accidentally into their oil wells." I believe that the US government is genuine in its attempt to stamp out terrorism by military force in Afghanistan, however misguided that may be. But we would be naïve to believe that this is all it is doing.

2001-10-23