Tuesday, June 15, 2010

Afghanistan's New Mineral Boon




Now they have discovered large veins of iron, copper, cobalt, gold and lithium, it should be good news for Afghanistan but it's not. It's going to take a long time to develop a serious mining industry. Their infrastructure is non existent, the road system is terrible and most of the minerals are in isolated places. Add to that the current lack of foreign investment in the country because of the continued fighting, and you get an idea of just how long it's going to take.


The US has invested heavily in the country and China and Russia are both eager to stake a claim for a share of the riches. There could also be a power struggle between the government in Kabul and the provincial and tribal leaders in the mineral rich areas. Then there is the problem of corruption - payoffs to warlords and government officials from the opium crop. These corrupt individuals would surely follow and be involved in any lucrative mining industry that might open up.

America is spending 100 million dollars in northern Afghanistan over the next twelve months. They intend to build roads, a power production system, electrical distribution system, water well production, water storage, water distribution, sanitary sewer collection system, communication manhole/duct system, curbs, walkways, drainage and parking. Construction is supposed to take one year at which time the US is allegedly supposed to begin winding down its forces and going home. It reminds me of what developers do before they release a new estate - I think they are getting ready to move in permanently.

I wonder what's really going on over there, I guess we'll never know.



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