After 16 years of delays, final week representatives of Afghanistan’s Taliban authorities and Chinese language engineers broke ground at Mes Aynak, estimated to be the world’s second-largest deposit of copper. The ribbons that have been reduce have been for an access road, a small first step in a undertaking that the Taliban have characterised as “crucial.”
Afghanistan is believed to have vital mineral reserves, largely unexploited resulting from many years of political instability and warfare. In whole, these sources – which vary from copper and iron ore to lithium and different important minerals – are valued at an estimated $1-3 trillion.
Situated round 40 kilometers southeast of Kabul in Logar Province, Mes Aynak is estimated to comprise (relying on the supply) someplace between 5.5 and 11.5 million metric tons of high-grade copper ore. Successive Afghan governments – and China – have lengthy hoped to faucet into the mine’s potential, however contractual disputes have impeded progress amid safety points, logistical challenges, and authorities adjustments.
In November 2007, the China Metallurgical Group Company (MCC), a Chinese language state-owned conglomerate, outbid competing affords by $1 billion – putting up a $3.4 billon bid for a 30-year lease to develop the mine. The contract, for slightly below $3 billion, was formally awarded in Might 2008 with plans for manufacturing to start out inside 5 years. Below the unique imaginative and prescient, the extracting, smelting, and processing of the uncooked copper was to happen in Afghanistan. Important infrastructure tasks, corresponding to an influence plant and a railway, have been additionally mentioned.
In 2013, as an alternative of beginning manufacturing as initially scheduled, the MCC requested a evaluate of its contract. Plans for the facility plant and the rail line have been dropped, and shortly thereafter the undertaking stalled totally. Chinese language workers reportedly left in 2014 because the warfare in Afghanistan shifted into a brand new section.
In neighboring Pakistan, China started pouring cash and a focus into the China-Pakistan Financial Hall (CPEC). Pakistani and Chinese language employees turned targets of militant teams. Considerations over safety have definitely plagued Mes Aynak, too, particularly because the Taliban and China started negotiating re-starting the undertaking.
Not lengthy after the Taliban seized management of Kabul in August 2021, the group’s Appearing Minister for Mining and Petroleum Shahbuddin Dilawar started pushing for re-engagement with MCC. Because the Related Press reported in March 2022, “Ziad Rashidi, the ministry’s director of overseas relations, approached the consortium made up by MCC, China Metallurgical Group Company and Jiangxi Copper Ltd. Dilawar has had two digital conferences with MCC within the final six months, in keeping with firm and ministry officers. He urged them to return to the mine, phrases unchanged from the 2008 contract.”
Rashidi advised the Related Press that “Chinese language corporations see the present scenario as ultimate for them. There’s a lack of worldwide opponents and a number of help from the federal government aspect.”
The Taliban, which had attacked safety checkpoints close to the mine as recently as 2020, acknowledged in Mes Aynak – and Chinese language capital – an unparalleled monetary alternative.
On the July 24 ribbon-cutting, which marked graduation of labor on an entry highway to the mine, Deputy Prime Minister for Financial Affairs Abdul Ghani Baradar stated, “The time wasted within the implementation of the undertaking needs to be recuperated with speedy work.”
Earlier, as Tolo News reported, a spokesman for the Ministry of Mines and Petroleum stated on X, previously Twitter, “The contracted firm has been obligated to start out the operations of this world-level main copper mine and its 100% course of in accordance with the 2008 commitments by the top of this week.”
Taliban officers, nonetheless, have moderated that enthusiasm, noting that it’s going to doubtless take two years before extraction can begin.
Whether or not Mes Aynak begins producing copper by 2026 or not will rely closely on a number of components, not the least of which is safety. However the probably hiccups would be the identical components that derailed the undertaking up to now: debate over the contract phrases and logistical difficulties. A brand new issue is the Taliban authorities itself, which definitely views the undertaking – and Chinese language funding – as a pathway to worldwide legitimization, if not official recognition.
Chinese language Ambassador to Afghanistan Zhao Xing stated on the ribbon-cutting that “financial and commerce relations between the 2 international locations have gotten more and more shut.” A readout posted by the embassy famous, “The Chinese language aspect is prepared to work with Afghan aspect to easily promote the exploitation of Afghan mineral sources whereas guaranteeing efficient safety of cultural relics, in order to make this undertaking a mannequin of funding cooperation between China and Afghanistan.”
Along with copper, Mes Aynak is dwelling to the stays of an ancient Buddhist city. Breaking from its Buddha-blasting past, the Taliban have pledged to see the location’s heritage preserved.
The Chinese language readout of the ribbon-cutting went on to notice that the Afghan aspect had pledged to “do its utmost to supply safety and comfort for the Chinese language firm.”
