WASHINGTON — The United States has discovered nearly $1 trillion in
untapped mineral deposits in Afghanistan,
far beyond any previously known reserves and enough to fundamentally
alter the Afghan economy and perhaps the Afghan war itself, according to
senior American government officials.
The previously unknown deposits — including huge veins of iron,
copper, cobalt, gold and critical industrial metals like lithium — are so big
and include so many minerals that are essential to modern industry that
Afghanistan could eventually be transformed into one of the most
important mining centers in the world, the United States officials
believe.
An internal Pentagon memo, for example, states that Afghanistan could
become the “Saudi Arabia of lithium,” a key raw material in the
manufacture of batteries for laptops and BlackBerrys.
The vast scale of Afghanistan’s mineral wealth was discovered by a
small team of Pentagon officials and American geologists. The Afghan
government and President Hamid Karzai were
recently briefed, American officials said.
While it could take many years to develop a mining industry, the
potential is so great that officials and executives in the industry
believe it could attract heavy investment even before mines are
profitable, providing the possibility of jobs that could distract from
generations of war.
“There is stunning potential here,” Gen. David H. Petraeus,
commander of the United States Central Command, said in an interview on
Saturday. “There are a lot of ifs, of course, but I think potentially it
is hugely significant.”
The value of the newly discovered mineral deposits dwarfs the size of
Afghanistan’s existing war-bedraggled economy, which is based largely
on opium production and narcotics trafficking as well as aid from the
United States and other industrialized countries. Afghanistan’s gross
domestic product is only about $12 billion.
“This will become the backbone of the Afghan economy,” said Jalil
Jumriany, an adviser to the Afghan minister of mines.
American and Afghan officials agreed to discuss the mineral
discoveries at a difficult moment in the war in Afghanistan. The
American-led offensive in Marja in southern Afghanistan has achieved
only limited gains. Meanwhile, charges of corruption and favoritism
continue to plague the Karzai government, and Mr. Karzai seems
increasingly embittered toward the White House.
So the Obama administration is hungry for some positive news to come
out of Afghanistan. Yet the American officials also recognize that the
mineral discoveries will almost certainly have a double-edged impact.
Instead of bringing peace, the newfound mineral wealth could lead the
Taliban to battle even
more fiercely to regain control of the country.
The corruption that is already rampant in the Karzai government could
also be amplified by the new wealth, particularly if a handful of
well-connected oligarchs, some with personal ties to the president, gain
control of the resources. Just last year, Afghanistan’s minister of
mines was accused by American officials of accepting a $30 million bribe
to award China the rights to develop its copper mine. The minister has
since been replaced.
Endless fights could erupt between the central government in Kabul
and provincial and tribal leaders in mineral-rich districts. Afghanistan
has a national mining law, written with the help of advisers from the World Bank, but it has never
faced a serious challenge.
“No one has tested that law; no one knows how it will stand up in a
fight between the central government and the provinces,” observed Paul A. Brinkley, deputy
undersecretary of defense for business and leader of the Pentagon team
that discovered the deposits.
At the same time, American officials fear resource-hungry China will
try to dominate the development of Afghanistan’s mineral wealth, which
could upset the United States, given its heavy investment in the region.
After winning the bid for its Aynak copper mine in Logar Province,
China clearly wants more, American officials said.
Another complication is that because Afghanistan has never had much
heavy industry before, it has little or no history of environmental
protection either. “The big question is, can this be developed in a
responsible way, in a way that is environmentally and socially
responsible?” Mr. Brinkley said. “No one knows how this will work.”
With virtually no mining industry or infrastructure in place today,
it will take decades for Afghanistan to exploit its mineral wealth
fully. “This is a country that has no mining culture,” said Jack Medlin,
a geologist in the United
States Geological Survey’s international affairs program. “They’ve
had some small artisanal mines, but now there could be some very, very
large mines that will require more than just a gold pan.”
The mineral deposits are scattered throughout the country, including
in the southern and eastern regions along the border with Pakistan that
have had some of the most intense combat in the American-led war against
the Taliban insurgency.
The Pentagon task force has already started trying to help the
Afghans set up a system to deal with mineral development. International
accounting firms that have expertise in mining contracts have been hired
to consult with the Afghan Ministry of Mines, and technical data is
being prepared to turn over to multinational mining companies and other
potential foreign investors. The Pentagon is helping Afghan officials
arrange to start seeking bids on mineral rights by next fall, officials
said.
“The Ministry of Mines is not ready to handle this,” Mr. Brinkley
said. “We are trying to help them get ready.”
Like much of the recent history of the country, the story of the
discovery of Afghanistan’s mineral wealth is one of missed opportunities
and the distractions of war.
In 2004, American geologists, sent to Afghanistan as part of a
broader reconstruction effort, stumbled across an intriguing series of
old charts and data at the library of the Afghan Geological Survey in
Kabul that hinted at major mineral deposits in the country. They soon
learned that the data had been collected by Soviet mining experts during
the Soviet occupation of Afghanistan in the 1980s, but cast aside when
the Soviets withdrew in 1989.
During the chaos of the 1990s, when Afghanistan was mired in civil
war and later ruled by the Taliban, a small group of Afghan geologists
protected the charts by taking them home, and returned them to the
Geological Survey’s library only after the American invasion and the
ouster of the Taliban in 2001.
“There were maps, but the development did not take place, because you
had 30 to 35 years of war,” said Ahmad Hujabre, an Afghan engineer who
worked for the Ministry of Mines in the 1970s.
Armed with the old Russian charts, the United States Geological
Survey began a series of aerial surveys of Afghanistan’s mineral
resources in 2006, using advanced gravity and magnetic measuring
equipment attached to an old Navy Orion P-3 aircraft that flew over
about 70 percent of the country.
The data from those flights was so promising that in 2007, the
geologists returned for an even more sophisticated study, using an old
British bomber equipped with instruments that offered a
three-dimensional profile of mineral deposits below the earth’s surface.
It was the most comprehensive geologic survey of Afghanistan ever
conducted.
The handful of American geologists who pored over the new data said
the results were astonishing.
But the results gathered dust for two more years, ignored by
officials in both the American and Afghan governments. In 2009, a
Pentagon task force that had created business development programs in
Iraq was transferred to Afghanistan, and came upon the geological data.
Until then, no one besides the geologists had bothered to look at the
information — and no one had sought to translate the technical data to
measure the potential economic value of the mineral deposits.
Soon, the Pentagon business development task force brought in teams
of American mining experts to validate the survey’s findings, and then
briefed Defense Secretary Robert M. Gates and
Mr. Karzai.
So far, the biggest mineral deposits discovered are of iron and
copper, and the quantities are large enough to make Afghanistan a major
world producer of both, United States officials said. Other finds
include large deposits of niobium, a soft metal used in producing
superconducting steel, rare earth elements and large gold deposits in
Pashtun areas of southern Afghanistan.
Just this month, American geologists working with the Pentagon team
have been conducting ground surveys on dry salt lakes in western
Afghanistan where they believe there are large deposits of lithium.
Pentagon officials said that their initial analysis at one location in
Ghazni Province showed the potential for lithium deposits as large of
those of Bolivia, which now has the world’s largest known lithium
reserves.
For the geologists who are now scouring some of the most remote
stretches of Afghanistan to complete the technical studies necessary
before the international bidding process is begun, there is a growing
sense that they are in the midst of one of the great discoveries of
their careers.
“On the ground, it’s very, very, promising,” Mr. Medlin said.
“Actually, it’s pretty amazing.”