05/12/2024
Mining News

China and Taliban resume Mes Aynak copper mine project after 16-year delay

After a hiatus of 16 years caused by ongoing conflict, work has officially resumed on the Mes Aynak copper mine in Afghanistan, a project anticipated to significantly impact the country’s mineral resources sector. The resumption ceremony took place on July 24, with key figures from both the Taliban government and China in attendance.afgh

The Mes Aynak mine, situated about 40 kilometers southeast of Kabul, is one of the world’s largest untapped copper deposits, estimated to contain 11.5 million tons of copper ore. This significant reserve holds substantial economic promise, particularly as demand for copper surges due to its critical role in electronics, renewable energy, and electric vehicles.

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The project is spearheaded by the China Metallurgical Group Corporation (MCC), which secured a 30-year mining concession through a $3 billion deal signed in 2008. However, progress was stalled due to conflict between NATO forces and Taliban insurgents, leading to a 16-year delay.

With the Taliban’s 2021 takeover and the subsequent reduction in violence, the Taliban government is now keen to harness Afghanistan’s mineral wealth to boost its struggling economy. Deputy Prime Minister for Economic Affairs Abdul Ghani Baradar emphasized the need to expedite the project, stating, “The time wasted in the implementation of the project should be recuperated with speedy work.”

Chinese diplomats, including Ambassador Zhao Xing, highlighted the project as a symbol of strengthening ties between Beijing and Kabul. Zhao remarked, “The economic and trade relations between the two countries are becoming increasingly close.”

The Taliban’s economic challenges are compounded by Western sanctions and international isolation, which have limited financial support. In this context, China has emerged as a crucial partner, with a focus on Afghanistan’s vast resource wealth. Beyond copper, Afghanistan is rich in iron ore and rare-earth minerals, with estimates suggesting $1 trillion in untapped mineral resources, including valuable lithium.

Amir Mohammad Musazai, a retired professor of geology at Kabul Polytechnic University, indicated that the copper reserves at Mes Aynak could surpass the initial $3 billion valuation, given additional reserves in the vicinity.

The July 24 ceremony at Mes Aynak, which included the formal start of road construction to the mine, was heavily secured due to ongoing security concerns. The Taliban has assured protection for the project staff, though security issues remain a significant obstacle for further expansion.

Chinese workers have faced attacks in the region, including incidents in Pakistan and Afghanistan. The Taliban’s commitment to safeguarding the project is seen as crucial for the successful resumption and expansion of mining operations in Afghanistan.

As China moves forward with its investments in Afghanistan, the Mes Aynak project represents a major step towards realizing the country’s mineral potential, despite the complex security and geopolitical landscape.

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