MES AYNAK, Afghanistan
\nThe ancient buddha statues sit in serene meditation in the caves carved into the russet cliffs of rural Afghanistan. Hundreds of meters below lies what is believed to be the world\u2019s largest deposit of copper. Afghanistan\u2019s Taliban rulers are pinning their hopes on Beijing to turn that rich vein into revenue to salvage the cash-starved country amid crippling international sanctions.
\nThe fighters standing guard by the rocky hillside may once have considered destroying the terracotta buddhas. Two decades ago when the Islamic hard-line Taliban were first in power, they sparked world outrage by blowing up gigantic buddha statues in another part of the country, calling them remnants of paganism that must be purged.
\nBut now they are intent on preserving the relics of the Mes Aynak copper mine. Doing so is key to unlocking billions in Chinese investment, said Hakumullah Mubariz, the Taliban head of security at the site. \u201cProtecting them is very important to us and the Chinese,\u201d he said.
\nThe Taliban\u2019s spectacular reversal illustrates the powerful allure of Afghanistan\u2019s untapped mining sector. Successive authorities have seen the country\u2019s mineral riches, estimated to be worth $1 trillion, as the key to a prosperous future, but none have been able to develop them amid the continual war and violence. Now, multiple countries, including Iran, Russia and Turkey are looking to invest, filling the vacuum left in the wake of the chaotic U.S. withdrawal.
\nBut Beijing is the most assertive. At Mes Aynak, it could become the first major power to take on a large-scale project in Taliban-controlled Afghanistan, potentially redrawing Asia\u2019s geopolitical map.
\nIn 2008, the previous administration of Hamid Karzai signed a 30-year contract with a Chinese joint venture called MCC to extract high-grade copper from Mes Aynak. Studies show the site holds up to 12 million tons of the mineral. But the project got tied up in logistical and contract problems, and it never got past some initial test shafts before it ground to a halt when Chinese staff left in 2014 because of continued violence.
\nMere months after the Taliban seized the capital in August, consolidating their power over the country, the group\u2019s newly installed acting Minister for Mining and Petroleum Shahbuddin Dilawar urged his staff to re-engage Chinese state-run companies.<\/p>\n
Dilawar has had two virtual meetings with MCC in the last six months, according to company and ministry officials. He urged them to return to the mine, terms unchanged from the 2008 contract.<\/p>\n
A technical committee from MCC is due in Kabul in the coming weeks to address the remaining obstacles. Relocating the artifacts is key. But MCC is also seeking to renegotiate terms, particularly to reduce taxes and slash the contract\u2019s 19.5% royalty rate by nearly half, the percentage owed to the government per ton of copper sold.<\/p>\n
\u201cChinese companies see the current situation as ideal for them. There is a lack of international competitors and a lot of support from the government side,\u201d said Ziad Rashidi, the ministry head of foreign relations.<\/p>\n
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\nChina\u2019s ambassador to Afghanistan has said talks are ongoing, but nothing more.<\/p>\n
Acquiring rare minerals is key for Beijing to maintain its standing as a global manufacturing powerhouse.<\/p>\n
For Afghanistan, the contract at Mes Aynak could bring in $250-300 million per year to state revenues, a 17% increase, as well as $800 million in fees over the contract\u2019s length, according to government and company officials. That\u2019s a significant sum as the country grapples with widespread poverty.<\/p>\n","protected":false},"excerpt":{"rendered":"
MES AYNAK, Afghanistan The ancient buddha statues sit in serene meditation in the caves carved into the russet cliffs of rural Afghanistan. Hundreds of meters below lies what is believed to be the world\u2019s largest deposit of copper. Afghanistan\u2019s Taliban rulers are pinning their hopes on Beijing to turn that rich vein into revenue to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6],"tags":[],"class_list":{"0":"post-251711","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-world"},"yoast_head":"\n