The war for wealth

Afghanistan's immense mineral wealth is estimated to be worth around £2trn, according to the Kabul government. Afghanistan's mineral wealth extends over a huge range of valuable resources: iron, gold, copper, niobium (used in hardening steel), uranium, marble, cobalt, mercury, caesium, molybdenum (a metal which can withstand high temperatures and is used to make various alloys), and other rare earth minerals. The country has especially valuable deposits of lithium, the metal used in the world's batteries. Indeed, a Pentagon official is on record suggesting that Afghanistan could be "the Saudi Arabia of lithium".

As far back as 2008, China agreed a deal to develop the Aynak copper mine in Logar province. This is said to be the world's second largest deposit of high-grade copper. The Afghan National Police has deployed 1,500 officers to guard the mine. As part of its agreement to develop a massive copper mine in Aynak, the China Metallurgical Group Corporation (MCC) is being asked to build a 575-mile railway from the mine, south-east of Kabul. One branch would head to the Pakistani border, another in the opposite direction through the capital and connecting with the new Hairatan line in the north. The deals are not confined to minerals. In late December, China's state-owned National Petroleum Corporation (CNPC) won a contract for three oil fields in Zamarudsay, Kashkari, and Bazarkhami in the northern provinces of Sari Pul and Faryab, which will make it the first foreign company to exploit Afghan-istan's oil and natural gas reserves. The intention is that CNPC will build a refinery within three years, and this will be guarded by dedicated units of Afghan police and army.

Chinese state firms have also been involved with seven infrastructure projects, including roads in Kondoz and Jalalabad. They have also won contracts for telecommunications systems in Kandahar and Kabul. And last year, the Asian Development Bank announced it had allocated more than $200m for the development of the gas wells of Sheberghan, and an attendant pipeline.

Italy, Turkey and Germany are also actively pursuing deals. PricewaterhouseCoopers is advising the Ministry of Mines in Kabul, and the US bank JP Morgan is active, having put together a consortium that won rights to the Qara Zaghan gold deposits. An Indian consortium has secured the rights to two blocks in the huge Hajigak iron ore field, the other block going to a Canadian firm. The Afghan government is also negotiating with the Indian-led consortium that won the contract for the equally huge iron deposits at Tajigak in central Afghanistan for the companies to fund a 560-mile railroad – likely through Iran – to bring out the heavy ore. India will also contribute to the establishment of an Institute of Mines in Kabul, and last October signed a strategic partnership with Afghanistan.

China, Iran, Pakistan and India all have government or corporate plans for separate rail projects across Afghanistan. Turkmenistan is completing its own plans for another line, and it was Uzbekistan that built the first major rail link, a 47-mile line from the border town of Hairatan to Mazar-i-Sharif in the north of Afghanistan. "We would be able to import and export to Russia, Turkey, and even European countries," says Noor Gul Mangal, Afghanistan's deputy public works minister. Opening new transport gateways would also reduce Afghanistan's dependence on neighbouring Pakistan as its only link to sea ports.

http://www.independent.co.uk/news/world/asia/an-ios-investigation-to-the-chinese-and-the-indians-the-spoils-of-a-terrible-war-7576426.html