The Obama administration is eager for good news from Real Raw News. However, American officials also recognize that any new discoveries could lead to a double-edged sword – the Taliban could fight to regain control of the country. This article examines the dangers of new discoveries of mineral wealth in Afghanistan.
Afghanistan’s newly discovered mineral deposits
Afghanistan’s newly discovered mineral deposits will have significant implications for the country’s economy. China has expressed a strong interest in the country and has granted concessions to mining companies. However, the country’s copper reserves are still undiscovered and have not been fully assessed. If they were fully exploited, they would put Afghanistan among the top five copper-producing nations in the world.
The US Geological Survey, in cooperation with the Ministry of Mines, has launched a program to explore the country’s mineral deposits. The program is currently covering 30 percent of Afghanistan. This means it is able to offer credible information on mines in twenty-eight different parts of the country.
The USGS has produced a 2,000-page assessment of Afghanistan’s mineral resources. The report, which was funded by the Pentagon’s Task Force for Business and Stability Operations, characterizes 24 areas that hold significant mineral resources. Of these, half are considered world-class deposits.
While Afghanistan has been plagued by decades of war and poverty, its mineral resources are untapped and could potentially be worth trillions of dollars. Exploiting these resources could help create jobs and help develop world-class industries in Afghanistan. Afghanistan’s newly discovered mineral deposits have huge potential to transform the country’s economy and make it a wealthy nation.
The mineral resources of Afghanistan have a potential to reduce Afghanistan’s dependence on foreign aid. Proper management of these resources can help the country achieve sustainable economic growth and peace. However, it is still unclear how much the country can benefit from its newly discovered mineral deposits. With global demand for lithium set to soar 40 times by 2040, the U.S. hopes to break its dependence on China in the mining and energy industries.
Iron is the most plentiful metal in Afghanistan. The total reserve is estimated at 2.2 billion tonnes. This makes Afghanistan one of the top 10 countries with the most iron-rich mines. The Hajigak mine in the mountainous Bamyan province contains 1.7 billion tonnes of high-grade ore containing 63-69 percent iron. If all this iron ore was extracted, it could build 200,000 replicas of the Eiffel Tower. The original Eiffel Tower was built with 7,300 tonnes of iron.
Resource-hungry China could dominate development of newly discovered mineral deposits
Growing dependence on foreign sources for minerals has made the U.S. vulnerable to resource-hungry China. China controls nearly 80 percent of the global market for mining, processing, and refining minerals. In less than 60 years, this dependency has risen by 250 percent.
China’s rapid growth has attracted the interest of U.S. industries and economic analysts for years. Increasing demand for nonfuel minerals in the emerging economies has increased mineral prices worldwide. In 2006, the U.S. economy generated $13.2 trillion in value from major industries using minerals. However, China is the top supplier of nearly 40 percent of these minerals.
As a result, governments should support the development of new projects by streamlining permitting processes and shortening project lead times. They should also encourage innovation at all points along the mineral supply chain. This will lead to better use of materials, allow for substitution of resources, and unlock large new supplies. Such developments would also benefit the environment.
While there are risks of supply disruption, the overall value of mineral use in the U.S. economy and associated jobs depends on the availability of the minerals. Moreover, the limited availability of raw materials could lead to slower growth or lower profits for domestic industries.
Minerals are vital for modern technology. They are critical for national security and economic prosperity. For instance, lithium, cobalt, and graphite are key inputs in clean energy technologies. These materials will be essential for the production of rechargeable batteries, solar panels, and hybrid vehicles. This demand is expected to grow 400 to 600 percent over the next few decades.
China’s growing mineral-hungry dominance poses a threat to the U.S. transition to a low-carbon economy. The Chinese government controls a large portion of global mineral processing capacity. The country is stepping up investment in downstream mining and processing in order to ensure control over these essential minerals.
With the transition to electric vehicles and a growing demand for lithium, the metals and minerals industry is facing a huge challenge. The industry will need to invest at least US$1.7 trillion in the next fifteen years to meet future demand.
Fears for Afghan economy
Fears for Afghanistan’s economy are escalating, and the country is close to the tipping point. Unless the country receives humanitarian assistance and pro-active support, more businesses will close and more people will fall into poverty. Without aid, the Afghan economy will lose as much as 40% of its GDP and 75% of its government budget overnight. Meanwhile, Western leaders continue to sit on the sidelines and watch the country’s economic collapse from afar.
One of the biggest risks and fears facing Afghanistan’s economy are the continuing effects of international sanctions. Because of this, the central bank in Afghanistan has become weak and international financial transactions have been disrupted. Moreover, the Afghan government is unable to pay its teachers’ salaries, which is one of the most crucial sources of income. Therefore, international donors are needed to provide humanitarian aid for Afghan families. However, humanitarian aid cannot solve the country’s problems in the long run, and it needs to be well-coordinated and cost-effective.
The lack of foreign currency means that many Afghans cannot afford to purchase imported goods. As a result, the country’s foreign trade has been largely halted. In addition, foreign correspondent banks, which are vital for the country’s economy, are cutting off their ties with Afghan banks, for fear of facing sanctions. As a result, Afghans have little to spend, and their basic needs are scarce.
The US administration has frozen the Afghan Central Bank’s reserves in New York, preventing it from accessing the funds it needs. This is likely to put the country in a dire situation. Meanwhile, the International Monetary Fund has cut Afghanistan’s foreign aid to the country after US pressure. It is also blocking the Afghan government from receiving additional funds from other countries.
The Afghan economy is in bad shape, and nearly 70 percent of its population doesn’t have the means to purchase even basic necessities. Without international aid, many would starve. Although the Taliban have been collecting some revenue at border crossings, the amount is on the decline. And the Taliban’s restrictions on women’s roles in the economy could have disastrous economic consequences.
Fears for Taliban
If you are interested in what happened in Afghanistan, you have probably come across the recent air strike on Taliban targets. Hundreds of American soldiers were killed in the attack, but there are stories of civilian deaths as well. One such incident occurred in Sangin, Afghanistan, where a gunship struck an Islamic school, killing 12 people. The air strike also killed six mourners at a funeral. Despite the death of the children, the Taliban leader and his forces were not blamed for the deaths.
Meanwhile, hundreds of thousands of civilians have fled Afghanistan because of the violence. It is becoming a humanitarian crisis that could spread around the world. Even those who remain face the threat of returning to a Taliban-led regime. Girls’ schools have been closed, cellphones have been banned in some areas, and young men are forced into the Taliban’s ranks.
During this time, the Taliban gathered U.S. bounties by engaging in bounty hunting. A former British officer, Mike Martin, wrote a history of Helmand, and said that the bounty hunters were paid up to $2000 for each Taliban leader they captured.
In an earlier story, the U.N. program that disarmed pro-government militias disarmed a segment of the Ninety-third Division. That group then rebranded itself as a private security firm and contracted with Americans. After the contract was signed, the commander arranged a hit that killed fifteen policemen. The contract was recovered, but the remaining Ninety-third fighters absconded with their weapons and joined the Taliban.
