• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 13 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 14 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"

UK Aims to Capture Share of $1 Trillion Afghan Natural Resource Reserves

The UK government decided Wednesday to get a foot on the door to Afghanistan’s $1 trillion of untapped mineral wealth, by providing a three-year, $15 million (£10m) plan to back mining and oil and gas projects in the country.

Estimations from World Bank officials, reports Financial Times (subs. required), indicate the potential financial benefits from mining and oil deposits are more than alluring.

According to the newspaper’s sources, the likely royalties and taxes that could be generated in the Asian country could reach $3 trillion. They thins the income will be key to establishing financial stability in the Asian country following the withdrawal of NATO troops in late 2014.

Related article: Turkey’s Dreams of Being Energy Hub Strengthened by PKK Negotiations?

Afghanistan’s mineral wealth is so vast that an internal Pentagon memo from 2010 —when most of the mineral and oil reserves were discovered— stated the country was posed to become the “Saudi Arabia of lithium,” a key element in the manufacture of high tech devices.

However, a mining law to attract foreign investment was recently rejected as it was considered “too generous” to Western commercial interests.

The lack of such regulations is jeopardizing several projects, such as the multi-billion dollar contract awarded to a consortium of Indian companies led by SAIL in 2011.

The group was set to mine the huge Hajigak iron ore deposit, considered one of the largest such deposits in the world at 1.8 billion tonnes.

Related article: IRAN-IRAQ: Pipeline to Syria Ups Ante in Proxy War with Qatar

Despite the setbacks, the Afghan government opened bids last year for vast copper and gold deposit, granting three licenses in early December to a consortium backed by City of London banker Ian Hannam, former BHP Billiton CEO Chip Goodyear and Poland’s multibillionaire Jan Kulczyk.

ADVERTISEMENT

China has also moved to acquire mining interests in Afghanistan with state-owned Metallurgical Corp’s successful $3.4 billion bid to build a copper mine – and a $6 billion railway to go with it – that should enter production in 2014.

By. Cecilia Jamasmie



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News