Business Class to Afghanistan

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Business Class to Afghanistan

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• Biden hands it over: Once US withdraws completely from Afghanistan, it will have practically handed over the mineral resources to others, most notably China. These include REEs (Rare Earth Elements), copper, chromite and so on, worth more than $ 1 trillion.
• What firms say: The Chinese govt.-owned firm MCC - which operated a huge copper mine inside Afghanistan - has said that it will enter once China recognises the new govt. in Kabul. It is clear that behind all the chaos and bloodshed, countries and companies are befriending the Taliban, for minerals. For the Talibs, drugs and mines are the two big revenue sources.
• American miners: It was found that even US military operated a chromite crusher (provided by the Pentagon) in eastern Kunar region. Without Taliban's permission, it would not be possible. 
• Indian firms in Afghanistan: A large consortium of Indian firms, led by SAIL (Steel Authority of India Ltd.), was all set to start a $10 b irone ore mining and steel project in Hajigak area (northern Afghanistan). There's nothing wrong in seeking such opportunities. It's still awaiting a launch, though.
• Estimates: US Geological Survey (USGS) said that the country may have massive mineral resources - 6 crore tonnes of copper, 2.2 b tonnes iron ore, 1.4 m tonnes of REEs (lanthanum, cerium, neodynium), and others. Some say Afghanistan may have the world's largest REE reserves, key to many emerging industries. (high-end electronics, military etc.)

1. US estimated that lithium deposits may exceed those in Bolivia (world's largest so far)
2. Today, US depends on Chinese supplies of rare earths, and wants alternatives

• New projects: Even for Chinese firms, getting new projects inside Afghanistan won't be easy at all. For China, the consolation prize is American inability to use mineral reserves despite military presence for a long time. However, Chinese business will face new troubles now.
• Existing parties: Talibani commanders themselves operate illegal, private mines, and in parallel the Government's own Mining Department too operates large mines. Even if the Chinese get new contracts, these existing interests will not compromise on their earnings.
• Command and control: Despite a central government in Kabul, it won't mean a central control over entire Afghanistan, and its mines. The Chinese are wary of angering any Talibani commander, as they may consider fanning the flames across the border in Xinjiang province.
• Summary: It is only over next many months that the world will know who gets to mine what, and earn how much.

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