Taliban start building road for huge Chinese copper mining project
By Mohammad Yunus Yawar and Charlotte Greenfield
KABUL, July 25 (Reuters) -Afghanistan's Taliban administration this week began construction of a road to the remote site of a huge copper mine that Metallurgical Corporation of China (MCC) confirmed it was planning to start operating though it did not know when.
The developments were among the clearest signals since the Taliban took over in 2021 that both sides planned to move ahead with the project after its launch has been mired by delays for over a decade.
If it goes ahead, the project would be one of the biggest in Afghanistan's history and the Taliban estimate it would create 3,000 direct jobs for Afghans and thousands more indirectly.
Afghanistan's vast mineral wealth has been trumpeted as a path to economic independence. But instability has repeatedly hampered past projects, even under the previous Western-backed government.
An MCC-led Chinese consortium took out a 30-year lease for the mine with the Afghan government in 2008.
Taliban acting deputy prime minister Mullah Baradar at a ceremony to launch the road's construction on Wednesday said the project was of "vital significance", according to a statement.
He highlighted: "the urgency of initiating practical work without further delay, given the considerable time already lost."
China's ambassador and a technical team for MCC also attended the ceremony in Mohammad Agha, the nearest town in eastern Logar province to the site, according to the statement.
A spokesperson for MCC's investor relations told Reuters on Thursday that they were not sure when operations would begin but that they did plan to push for the mine to start operations.
An MCC source told Reuters in 2021 that it could take five to six years to build infrastructure for mining there but the project could not go anywhere while safety concerns lingered.
China has signalled interest in mining investment in Taliban-ruled Afghanistan and has spoken with the Taliban about its plans to join Beijing's Belt and Road Infrastructure plan.
Mired by banking restrictions, Afghanistan has plunged into economic crisis since the Taliban took over and no foreign government has formally recognised their government.
The Taliban say they have focused on restoring security after 20 years of war. However attacks, including on foreign targets and a hotel popular with Chinese businesspeople, have been carried out by militant groups including the Islamic State.
Reporting by Mohammad Yunus Yawar in Kabul, Charlotte Greenfield in Islamabad and Beijing Newsroom, Editing by Alexandra Hudson
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
