Monday, June 14, 2010

Mineral wealth in Afghanistan just discovered

U.S. Identifies Vast Riches of Minerals in Afghanistan
The New York Times

A bleak Ghazni Province seems to offer little, but a Pentagon study says it may have among the world’s largest deposits of lithium.
By JAMES RISEN
Published: June 13, 2010

Excerpts from and Comments on Risen's article.

The principal point of this article is that 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 reserves of deposits have previously been unknown — including huge veins of iron, copper, cobalt, gold and critical industrial metals like lithium. They could eventually turn Afghanistan— into one of the most important mining centers in the world, the United States officials believe. Our viewpoint on this site has always identified the importance of Afghanistan's geographical location in a regional context where there are substantial oil reserves. Oil, pipelines, competition among major powers for oil and control over its distribution, and the corruption and environmental degradation that follows oil exploration and production - these are what we focused on. Now, with the discovery of rich mineral and metal deposits, Afghanistan's strategic position will grow in importance and perhaps generate even more international interest and conflict - and reasons for the US to keep troops in the country.

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.”

....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.

....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.

....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.

....So far, the biggest mineral deposits discovered are of iron and copper, and the quantities are large enough to make Afghanistan a major world producer of both, United States officials said. Other finds include large deposits of niobium, a soft metal used in producing superconducting steel, rare earth elements and large gold deposits in Pashtun areas of southern Afghanistan.
Just this month, American geologists working with the Pentagon team have been conducting ground surveys on dry salt lakes in western Afghanistan where they believe there are large deposits of lithium. Pentagon officials said that their initial analysis at one location in Ghazni Province showed the potential for lithium deposits as large of those of Bolivia, which now has the world’s largest known lithium reserves.

A version of this article appeared in print on June 14, 2010, on page A1 of the New York edition.

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