New riches with minerals in Afghanistan

A US discovery has unearthed new wealth in the form of minerals in Afghanistan. The US discovered nearly US$1 trillion in untapped mineral deposits - far beyond any known reserve. The reserves of minerals in Afghanistan is enough to possibly alter the Afghan economy and perhaps the Afghan war, according to American government officials.

US officials believe that the discovery of minerals in Afghanistan - including huge veins of iron, copper, cobalt, gold and critical industrial metals like lithium, is enough to transform Afghanistan into one of the most important mining centres in the world.

An internal Pentagon memo states that Afghanistan could become the "Saudi Arabia of lithium," a key raw material in the manufacture of batteries for laptops and BlackBerrys, The New York Times reports.

Discovery of minerals in Afghanistan

Afghanistan's mineral wealth was discovered by a small team of Pentagon officials and American geologists. The Afghan government and President Hamid Karzai have been briefed, American officials said.

Until now, the country's mining activity has been centred on coal and copper with some gold, marble, rare earth and gem mining being carried out.

It is believed that the deposits were first discovered by the Soviets more than 25 years ago but they did not get enough time to develop the resources before their departure from the country.

The report in The Times said the US Geological Survey began aerial surveys of Afghanistan's mineral resources in 2006, using data that had been collected by Soviet mining experts during the Soviet occupation of Afghanistan in the 1980s. Promising results led to a more sophisticated study the next year.

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.

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 United States and other industrialised countries. Afghanistan's gross domestic product (GDP) is only about US$12 billion. The country generated GDP per head was just US$800 in 2009, British newspaper The Telegraph reported.

"This will become the backbone of the Afghan economy," said Jalil Jumriany, an adviser to the Afghan minister of mines.

American and Afghan officials agreed to discuss the mineral discoveries at a difficult moment in the war in Afghanistan. The American-led offensive in Marja in southern Afghanistan has achieved only limited gains. Meanwhile, charges of corruption and favoritism continue to plague the Karzai government, and Mr. Karzai seems increasingly bitter in his attitude towards the White House.

 

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