US finds Afghan mineral riches
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.world Updated: Jun 15, 2010 00:58 IST
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 previously unknown deposits — including huge veins of iron, copper, cobalt, gold and critical industrial metals like lithium — are so big and include so many minerals that are essential to modern industry that Afghanistan could eventually be transformed into one of the most important mining centers in the world, the US officials believe.
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 US Central Command, said in an nterview.
"There are a lot of ifs, of course, but I think potentially it is hugely significant."
The value of the newly discovered mineral deposits dwarfs the size of Afghanistan's existing war-bedraggled economy, which is based largely on opium production and narcotics trafficking as well as aid from the US and other industrialised countries. Afghanistan's gross domestic product is only about $12 billion.
The American-led offensive in Marjah in southern Afghanistan has achieved only limited gains. Meanwhile, charges of corruption and favouritism continue to plague the Karzai government, and Karzai seems increasingly embittered toward the White House.
So the Obama administration is hungry for some positive news to come out of Afghanistan. Yet the American officials also recognise 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, some with personal ties to the president, gain control of the resources.