This archive report was first published on 22 August 2021.
August 22, 2021, marked a significant turning point for Afghanistan as the Taliban returned to power, inheriting a vast, untapped trove of minerals estimated to be worth $1 trillion.
The country's mineral riches include bauxite, copper, iron ore, lithium, and rare earths, according to a January report by the US Geological Survey (USGS). These resources hold immense potential for powering the world's transition to renewable energies.
Copper, a crucial component in power cables, has seen its prices soar to over $10,000 per tonne this year, while lithium is essential for electric car batteries, solar panels, and wind farms. The International Energy Agency predicts that world demand for lithium will grow by over 40 times by 2040.
Afghanistan's untapped lithium reserves have not been tapped to this day, according to Guillaume Pitron, author of 'The Rare Metals War'. The country is also home to rare earths used in the clean energy sector, including neodymium, praseodymium, and dysprosium.
While Afghanistan has done better in extracting precious stones like emeralds and rubies, as well as semi-precious tourmaline and lapis lazuli, the business is plagued by illegal smuggling to Pakistan. The country also mines for talc, marble, coal, and iron.
Despite the Taliban's takeover, China appears willing to do business with them. The state-owned China Metallurgical Group Corporation won rights in 2007 to lease the giant Mes Aynak copper ore deposit for 30 years and extract 11.5 million tonnes of the commodity.
However, the project to tap the world's second-largest unexploited copper deposit has yet to start operations due to safety issues. A source at the group cited by the Global Times stated that it would consider reopening the project after the situation is stabilised and international recognition of the Taliban regime takes place.
