China is making a re-entry into Afghanistan and this time it is for the reserves of rich minerals that Afghanistan possesses. This also explains Beijing’s early engagement with the Taliban regime as it had even hosted members of the defacto Taliban government in China. Taliban has now reportedly confirmed that a Chinese company, Gochin, has expressed willingness to invest $10 billion on Afghanistan’s lithium deposits. There are also reports that the Chinese company has offered to build another tunnel at the Salang Pass, which is strategically located.
Shahabuddin Delawar, the acting minister of mines and petroleum of the Taliban, has welcomed Gochin’s interest in investing in Afghanistan’s lithium mines, as BNN Network reported. Delawar highlighted the rarity of lithium mines and stated that his ministry has decided to contract all of the country’s mines.
A representative from the Chinese company Gochin has expressed interest in investing $10 billion in Afghanistan’s lithium mines. The Chinese are making the offer on the pretext of providing employment to the Afghan people and providing them funds, which would help Taliban tide over the financial crisis due to sanctions imposed by Western nations. The Chinese company believes that this investment would provide employment opportunities for over 120,000 people directly and one million people indirectly.
Last month there were reports that Afghanistan’s Taliban-led administration has set up a consortium of companies, including in China, Russia, Iran and Pakistan to create an investment plan focusing on power, mining and infrastructure.
Los Angeles Times had reported in November, 2022 that Chinese citizens working with Afghan collaborators were allegedly transporting rocks containing up to 30 per cent lithium. These precious stones were extracted from Nuristan and Kunar in Afghanistan.
Afghanistan is home to a number of precious minerals and metals including chromite, lead, zinc, copper and iron, rarer metals such as gold, mercury and uranium and it has possibly the world’s largest deposit of lithium, an essential element of electric vehicle batteries that’s in much greater demand today.
This wealth of Afghanistan has attracted foreign powers such as China, Russia and Iran to reach out to the Taliban regimes. These nations are hostile to the US and their nexus is seen as they have been doing business with the Islamic Emirate of Afghanistan, after the western forces withdrew from the region. The absence of America from Kabul has only helped these powers as they are helping Taliban tide over the sanctions and in return entering into lucrative deals to exploit the mineral wealth of the war torn nation. Pakistan, Turkey and Qatar to are in the queue to exploit the natural resources.
There are concerns in the US regarding the axis of China, Russia and Iran emerging in the Taliban, whereas Washington has refused to deal with the brutal regime in the country. Some American analysts are suggesting that the US should rethink its policy and enter into some agreement with the Afghan regime.
Los Angeles Times reported that the estimated value of Afghanistan’s deposits is somewhere between $1 trillion and $3 trillion. This wealth is enough to transform the fortunes of one of the poorest nations of the world.
China was quick to invite Taliban leaders after they took over the reins of the country. Beijing requires lithium, cobalt, iron and coal as consumption grows in the country. Chinese officials are regularly visiting Kabul seeking contracts and it is ahead of all other nations in wooing Taliban for its long term strategic interests. Those bidding also include state-owned China Metallurgical Group Corp., which won concession in 2007 for Afghanistan’s Logar’s Mes Aynak, one of the largest and highest-quality copper mines in the world. This was a major Buddhist settlement and the site contains archaeological artifacts, which needs to be preserved. The Chinese have begun talks with the Taliban on beginning with the mining here.
In September, 2022, the Taliban trade minister announced a deal with Russia for the purchase of discounted Russian gasoline, diesel, natural gas and wheat. He offered payment in kind that is giving Moscow access to Afghanistan’s mineral resources. Iranian officials have also said that an Iranian firm would soon begin mining for lead and zinc in the central Afghan province of Ghor.
See Also:https://indiadiplomacy.in/european-leaders-visiting-china-to-secure-their-business-interests/
