Afghan copper mine holds promise for Taliban, tempered expectations for China

After 16 years of delays due to war, a groundbreaking ceremony for what will be the world’s second largest copper mine was held on Wednesday between China and Afghanistan.

State-owned China Metallurgical Group Corporation (MCC) started construction on a 25km (15.5 mile) road to the Mes Aynak Copper Mine, one of the largest untouched copper deposits in central Afghanistan’s Logar province.

Zhao Xing, China’s ambassador in Kabul, told Taliban officials at the ceremony that road construction was “a significant step”, according to a report by television broadcaster TOLOnews.

“The start of the Mes Aynak … road construction is very important in implementing future plans for this project and facilitates the excavation route, which is a significant step in the Mes Aynak Copper Mine project,” Zhao said.

He added that China was coordinating with the United Nations and other countries to ensure stability and progress for Afghanistan.

Abdul Ghani Baradar, Taliban’s deputy prime minister for economic affairs, said the security of investors and workers living in the country would be ensured.

The project’s start came as Beijing has made careful inroads into Afghanistan after the chaotic withdrawal of American troops nearly three years ago paved the way for the Taliban to retake power of the country.

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China’s ambassador to Afghanistan Zhao Xing (centre) looks on during the inauguration ceremony of the Mes Aynak Copper Mine project on Wednesday. Photo: AFP

Like most countries, China has not formally recognised the Taliban, but last September, it became the first country to name a new ambassador to Afghanistan. Four months later, Bilal Karimi, a former Taliban spokesman, became the country’s envoy to Beijing.

China has hosted senior Taliban officials, including Foreign Minister Amir Khan Mutaqi, while officials from state-owned companies often visit the Taliban’s embassy in Beijing.

Zhu Yongbiao, director of the Centre for Afghanistan Studies at Lanzhou University, said the project “has a long way to go before real construction starts”.

“It does not mean that the rest of the Mes Aynak project will go smoothly, especially considering the lack of relevant infrastructure such as electricity and water as well as the uncertainty of the investment environment in the country, which I don’t think will be improved in the near future.”

However, the project would be of “greater importance” to the Taliban government, which is desperate to bring in foreign investment to boost its war-torn economy, Zhu said.

“The interim government in Afghanistan is pinning its hopes on the mining project bringing some amplifying effects to draw in foreign investment, but to China, the project itself is no more than a business activity instead of something at a national strategic level.”

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Afghan and Chinese officials attend a ribbon-cutting ceremony to inaugurate the project on Wednesday. Photo: AFP

When MCC won the 30-year rights to develop Mes Ayank in 2007, it was hailed by the Assets Supervision and Administration Commission, which oversees China’s state-run companies, as a successful attempt “to greatly alleviate the shortage of copper resources in China, increase China’s strategic resource reserves and enhance China’s influence in international mining industry”.

Under the US$4.2 billion investment agreement signed in 2018, the five-year construction project will also include a power plant and a water pumping station, as well as other public facilities such as schools, hospitals, mosques and housing.

The deal was expected to create 10,000 jobs and an annual output of US$1.2billion, accounting for about half of Afghanistan’s GDP at the time.

However, the project has been plagued by delays as a result of problems such as the security situation and disputes between MCC and the previous US-backed Afghan government.

Zhu said volatility in global copper prices and concerns over cultural heritage will add to uncertainty over the mining project.

Archaeologists worry that the project could ruin the site of an ancient settlement where more 400 images of Buddha, as well as stupas and monasteries have been found.

At Wednesday’s ceremony, Li Qun, China’s deputy culture minister who was leading a delegation in Afghanistan, said the Mes Aynak area “holds special value for tourism, handicrafts, cultural development and the ancient Silk Road”.

“I believe that cultural cooperation between Afghanistan and China can enhance global culture and strengthen relations between the two countries,” he said.

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