Afghanistan faces some huge chal lenges to knock its mineral resource abundance

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Afghanistan faces some huge challenges to knock its mineral resource abundance

Many issues are left unanswered as the conclusion of the U.S.-led war in Afghanistan nears, including how Afghanistan can establish a viable and sustainable economy. Following the withdrawal of U.S. support, Afghanistan is left behind with very few pickups! One such option resides in the nation’s resource of natural wealth. Approximately $1 trillion in nonfuel minerals exists in Afghanistan, making it a net exporter of resources.

The resources may lie in the natural world. The nation has been famous for its precious jewels for thousands of years. For the most part, these minerals are mined in tiny, artisanal mines that are legal and illicit. Blessings of iron, copper, lithium, rare earth elements, cobalt, bauxite, mercury, uranium, and chromium, on the other hand, have much greater value.

Scientific knowledge of these resources is exploratory, even if the overall mineral richness is considerable. Even if the rewards are better understood, the resources will not give a head start in kicking a new economy. It is expected to take at least seven to ten years before large-scale mining will become a significant new source of income for the residents of Afghanistan.

U.S. GEOLOGICAL SURVEY FOLLOWS THE SOVIET MODEL

Among the first modern surveys of Afghanistan's minerals were those performed by British and German geologists in the 19th and early 20th centuries. The Soviets conducted

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a significant amount of exploratory research in the 1960s and 1970s, resulting in a great deal of comprehensive material that provided the basis for more current investigations.

The U.S. Geological Survey examined additional data obtained via an aerial survey, limited field verification, and information from the Afghanistan Geological Survey during a little less than ten-year period beginning in 2004 and going up to 2011. This study has provided improved information on mineral locations, richness, and abundance.

Anyone who studies the material as thoroughly as expected would be hard-pressed to overlook the massive exploration effort undertaken by Soviet experts. Huge sampling and borehole drilling were executed, and many lab analyses were done upon relevant samples.

The enormous financial and time resources put into the endeavor, especially in light of Afghanistan's colonial past, clearly indicates that significant high-level strategies were under development to extract the country's minerals once it was a part of the Soviet sphere of influence.

According to this information, the U.S. Geological Survey identified 24 potential mineral deposits in the country and calculated their total amount in terms of mineral value and kind. The administration would then utilize all this data from these 24 research fields to help them in their strategies to take advantage of such an exuberant bundle of resources.

Chinese and Indian firms were eager to invest and received substantial discounts. However, contractual issues and worries about security have been on hold since the late 2010s as arguments about contract conditions persist.

A Chinese company built this mining camp at Mes Aynak in Afghanistan about 10 years ago to house workers for a planned copper mine that never began production. The people in the front were taking part in an archaeological dig. Jerome Starkey/flicrk, CC BY-SA

MINERAL AFFLUENCE

In Afghanistan, how much mineral richness does one find? The estimates of metals of particular interest presented by the U.S. Geological Survey are as follows: copper, iron, lithium, and rare earth metals. The USGS estimates for itself that its estimates are "conservative" but also "preliminary."

Still, the overall resources are very substantial. About 57.7 million metric tons of total copper resources are currently recognized. The estimated market value of the resource is $516 billion as per current pricing. These are unveiled resources that have been found but not yet analyzed thoroughly.

However, they’ll put Afghanistan in the top five countries for copper deposits if additional research finds them recoverable at a profit, proving very beneficial for the country which is striving to thrive at the moment.

has the world's most significant known deposit of copper, as well as substantial quantities of cobalt. Mine development was first launched in 1979 when the Soviet Union invaded Afghanistan. However, the Soviets halted work on the mine in 1989 as they withdrew from the country. At current market pricing, the entire Aynak deposit's high-grade part is expected to be 11.3 million metric tons of copper, worth $102 billion.

In Afghanistan, the Haji Gak iron ore deposit located in Bamiyan Province contains one of the world's most abundant iron ore deposits, and this is another site of major significance. The iron content of the estimated 2,100 million metric tons at Haji Gak's high-grade ore is 61% to 69% iron by weight. This is $336.8 billion in extractable iron on the current market stats, making Afghanistan rank among the top 10 countries globally.

Geologists were astonished by the number of Lithium resources in Nuristan Province, which presented as veins (lithium is also mined from brine). However, since a search for such deposits has risen throughout the globe in the last decade, it is a substantial yet not plenty a resource in today's terms.

These deposits consist of cerium, along with lower amounts of more valuable lanthanum, praseodymium, and neodymium, going up to perhaps 1.4 million metric tons. 2 out of these, praseodymium and neodymium, are very expensive – more than $45,000 per metric ton – and make high-quality magnets deployed in motors for hybrid and electric vehicles, however, if compared to other countries, this is still not very considerable.

Last but not least, minerals known as rare earth elements occur in the southern Helmand Province. Cerium accounts for the largest share of these resources, followed by considerable quantities of other essential rare earth elements totaling around 1.4 million metric tons approximately.

Much precious lanthanum, praseodymium, and neodymium can be found in this reserve; the price levels for these two elements, praseodymium, and neodymium, are at an all-time high (higher than $45,000/metric ton).

These are the resources that produce excellent permanent magnets deployed in hybrid and electric vehicle motors, but unfortunately, the abundance of these elements is not very enormous in comparison to what the other nations carry. Nevertheless, this is a vital and favorable status for Afghanistan, especially given the current economic turmoil.

In Afghanistan, how much mineral richness does one find? The estimates of metals of particular interest presented by the U.S. Geological Survey are as follows: copper, iron, lithium, and rare earth metals. The USGS estimates for itself that its estimates are "conservative" but also "preliminary." Still, the overall resources are very substantial.

POLITICAL PRESSURES ON THE SURFACE ASPECTS

As a rule of thumb, mining experts propose that what is above the earth is much more important than what is below it. Market realities, security, contract terms, infrastructure, and environmental

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A map of mineral resources published by the United States Geological Survey in 2007. United States Geological Survey

concerns play a significant role in developing resources.

And what exaggerates this criterion in today’s time is a very acute and determined demand for metals (especially copper, lithium, and rare earth elements), which are the life and soul of the now fast developing and fast gaining acceptance sectors pertaining to renewable energy and electric vehicles. or not Afghanistan is allowed to reap on these mining elements depends on the actions of the new Taliban regime. One $2.9 billion contract for a section of the Aynak copper mine was given to two state-owned Chinese firms. This happened under the Former Ministry of Mines.

The 30-year deal finalized in 2007 required ore smelting and processing to be done locally, and the royalty rate for this was above the world average. Also, on the agenda was establishing a 400-megawatt coal power plant and constructing a rail line that would link Pakistan to the border.

One further requirement imposed by the contract was that 85% -100% of the workers, ranging from skilled labor to management people, were Afghan citizens in not more than eight years after the beginning of the project. Though the businesses first agreed to the conditions, the restrictions subsequently proved

burdensome, thereby preventing growth. Though the presence of good-quality roads, trains, and power in Afghanistan gives the country greater access to its natural resources, the country lacks decent highways, railways, and electricity.

In this instance, mining firms are not new to these types of problems. This is due to rugged terrain and the fact that the nation is landlocked. Especially for moving ore, raw or processed, railroads are essential.

There is present a vast site of Buddhist relics, sculptures, temples, and stupas, at less than a mile north of the Aynak copper mine. The locations that have been used to mine Bronze Age metals also have significant archaeological riches.

But much like with the Afghan sites, there is no consensus yet on how the Taliban commanders who ordered the demolition of the Bamiyan Buddha sculptures in 2001 would see these locations now.

For Afghanistan, having access to the country's natural resources is a source of long-term foreign investment, skilled workforce training, and infrastructure development, all necessary for sustained economic growth.

However, another significant issue is which businesses could be part of it.

Afghanistan is also in the middle of several geopolitical conflicts, such as India, Pakistan, China, Iran, and the United States. It does not make the nation's resources any less significant because the Taliban now controls the country!

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