Afghanistan has immense wealth in its high mountains and under the ground. But security concerns have hobbled the implementation of international mining bids for minerals including copper and iron ore.
Afghanistan has immense wealth in its high mountains and under the ground. But security concerns have hobbled the implementation of international mining bids for minerals including copper and iron ore.Authorities in the Ministry of Mines and Industries blame “powerful people” for the stoppage of mining projects and have urged security agencies for support. Jawad Omar, the ministry’s spokesman, said: “Despite the ministry’s best efforts there are problems; a list of powerful people has been finalised and sent to the State Administration Office. Once approved it will be shown to the media after it has been passed by the Council of Ministers.”
There are reports that the failure to implement projects and provide jobs to local people is forcing people to join the ranks of the Taleban.
The Wall Street Journal reported on Dec 14 that this summer the Afghan government evicted squatters in the unregulated mines of Bamiyan’s Kahmar district to make way for a Chinese consortium led by the state-run China Metallurgical Group that won the concession for Bamiyan’s coalminesin 2009. The evicted locals, who hadno means of employment, joined the Taleban.
Jawad Omar, the Ministry of Mines and Industry spokesman, promptly denied the report titled, ‘Delays at Chinese-run Afghan mines raises security fears’. He says mining will unlock Afghanistan’s economic revolution.
Plans on the ground
He blamed regional geo-political rivalries for the presence of the Taleban and the rising insecurity. Over the past year the Ministry of Mines and Industry has created an office of a deputy minister in charge of security for projects. “Officers are on duty day and night. If there’s a request for help, the ministry will be ready to rush forces,” Najibullah Nikzad, deputy to the Ministry of Mines and Industry spokesman, said.
There is a growing clamour for strengthening security in natural resource concessions awarded by the government. Projects have to be implemented to ensure there are jobs for locals. RohullahAhmadzai, an economist, has urged the government to change laws for the speedy implementation of the development projects.
“Insecurity is not the only problem,” he said. “Laws regarding mining have also created many problems for extraction in the mines and external investment.” Ahmadzai believes foreign bidders would flock to Afghanistan if they were assured of the government’s trust. Administrative corruption and lack of transparency have forced big mining to stay away. “The government should pay special attention because mining is the key to Afghanistan’s self-sufficiency and development,” said Ahmadzai.
Security cover
Mohammad Yunus Negah, economist and member of the Chamber of Commerce, rues the failure of the government to plough back profits from mining into the country. “The revenue gotten from mines has enabled the unqualified government to go on and on. It has not been of any advantage to ordinary people.”
Omar divides the mines in three categories: the big, the middle and the small. According to him, 120 contracts have been awarded in the small mine category, which produce construction material, and 10 contracts have been given for extraction of coal.
The three biggest contracts awarded by the Ministry of Mines and Industry are Hajigak in Bamiyan province, Asia’s biggest untapped iron ore deposit, which was given to an Indian group in November 2011; Aynak copper mine in Logar province, which was granted to a Chinese consortium in November 2007; and oil in the Amu River Zone whose extraction by the Chinese National Petroleum Corporation is expected to reach 150,000 barrels by March 2013.
The Ministry of Mines and Industry spokesman said security guards would police every project.
