U.S. Identifies Vast Mineral Deposits Worth $1 Trillion in Afghanistan; “The Saudi Arabia of Lithium”; Eventually “One of The Most Important Mining Centers in The World”; Pentagon “Helping” Afghan Government to Prepare to Seek Bids on Mineral Rights

June 14th, 2010

I am Jack’s complete lack of surprise.

—Fight Club

Update: Afghan Mineral Deposits Actually Worth $3 Trillion, Not $1 Trillion

—End Update—

The Soviets knew about it! They did geological surveys during their occupation of Afghanistan.

Which makes you wonder… Did the U.S. actually know about it all this time? This piece says otherwise, but it’s the New York Times.

Was this part of the internal narrative, part of the reasoning, for carrying out the 9/11 spectacle? CIA asset Bin Laden… Operating in the “Saudi Arabia of lithium.” Tell me another one.

Did China know about this all along? Without Chinese funding, the U.S. wouldn’t be in Afghanistan.

Questions, questions…

I hesitate to call this the coup de grâce, because, no matter how nuts or incredible I think a situation is, decade in and decade out, They always manage to raise the bar just a bit higher.

Anyway, the full text is below. At a minimum, it’s a keeper.

Via: New York Times:

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.”

3 Responses to “U.S. Identifies Vast Mineral Deposits Worth $1 Trillion in Afghanistan; “The Saudi Arabia of Lithium”; Eventually “One of The Most Important Mining Centers in The World”; Pentagon “Helping” Afghan Government to Prepare to Seek Bids on Mineral Rights”

  1. Eileen says:

    I couldn’t even read this entire article because it made me so sick. I have been through emotional hell over the oil spill in the Gulf of Mexico where my family has the potential to be covered with oil in the summer hurricane season.
    And now, wars fought for lithium. I’m imagining Dick Cheney salivating over these riches. I imagine he pulls the Master plan out of his, er dark spot every night and gets off sets his pacemaker on some kind of bizarre erotic setting where he gets off thinking about his Precious.
    Surely, Haliburton will develop a talent over night to suddenly have mining capabilites. And Goldman Sachs will arrange the financing.
    Disgusting to me how the TPTB find human life so expendable in their pillage of the planet for sources of power and what they equate with wealth. Oil, opium, whatever, while they obviously don’t really give a shit about the human race.
    I guess to them, we’re all just bugs swarming around on the face of the planet that they think they can swat, poison, and will to die while they decide how to divide and conquer the Earth and its resources.
    Same as it ever was.
    We need a new uprising on this Planet Earth that says, Hell No, I won’t be meat for your freaking Earth Rape Conquest Profit Grinder for peanuts in pay, a head blown to bits by IED;s, no benefits, families living off of shitty food rations. No fun, no vacations. Just work, pay taxes, and save for your retirement that we will not be able to pay your for because we’re bankrupt. So solly. Get to the end of the line with your whining and complaining about how you deserve this, that and the other. ITS SO MUCH BULLSHIT Anymore.
    I don’t even need to rant. The tipping point is coming soon. I believe love for our life on Earth is going to overcome us all to such an extent that we will lay down our swords. I can’t explain this feeling but I think that time of our “rapture” is coming soon (that to me means Revolution against the TPTB is emminent.} Honestly, don’t know why I sense this. Women they say, when they get older, get a feeling for things. Its coming. To me, this is joy and about freaking time.

  2. rotger says:

    While I think it is very well possible they went in afghanistan in part for this reason, it looks to me that 1 trillion is not a lot. Last I read, the cost of the afghanistan war amount to 300 billions right now (for the US only). That mean potentialy 700 billions profit for the US, but nothing tells us they will get all of the possible contracts. China already secured a deal for a mine, NATO allies who went in afghanistan will also want a part of it. In the end we can only guess how much money will go in the US pockets but I’m wondering if they would really consider doing a 9/11 + a 10 year war + bad international relation “just” for net money gain.
    Securing a long term access to those minerals (and oil in Iraq) might worth more than 1 trillion for the US in the future when we already hear rumors of lithium and oil shortage coming in the next decades.
    Other reasons for this war can be drugs for the CIA, geo strategic location of american bases,etc.(I now always look at the world map when I read news about “revolution”,wars, etc.. in countries, things always seems to make more sense)
    Reality might well be a mix of all those thing that made some people say: hey let’s start a war on terror…

  3. realitydesign says:

    Pssst. Look over there at all those minerals.

    I said over there at the minerals.

    No, not over here at the smack trade, over there.
    The minerals.

    It’s all about the minerals.

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