Chinese miners interested in vast Afghan lithium reserves

Chinese companies are showing interest in exploiting the vast untapped mineral resources of Afghanistan as Beijing seeks a role in rebuilding the war-torn nation’s economy.

Afghanistan has fields estimated to be worth $ 1 trillion or more, including what could be the largest oil reserves. lithium the world, a vital component of the energy storage batteries that are driving the global transition away from fossil fuels. The opportunity in Afghanistan comes after the United States, the country’s great geopolitical rival, China, put an end to two decades of military presence in the country earlier this year.

Taliban government officials recently met with representatives of five Chinese private companies to discuss mining in the country, according to the Afghanistan Chamber of Commerce and Investment. The companies showed “great interest” in the nation’s mineral deposits, as well as the construction and agriculture sectors, Khanjan Alokozay, a senior member of the chamber, said by phone.

China is both the world’s largest mineral consumer and a long-term investor in many of its Asian neighbors through President Xi Jinping’s flagship “Belt and Road” initiative. To secure its supply of raw materials, Beijing has shown its willingness to invest in some of the world’s most volatile jurisdictions, including the nations of Africa and South America.

Interest in lithium

China’s interest is backed by the Taliban government, Alokozay said. The militant group seeks foreign support for an economy that has collapsed since it came to power in August. Efforts to increase trade between the two nations were also discussed, he noted.

The Gloabl Times tabloid, owned by the Communist Party of China, reported earlier this week that representatives from several Chinese companies visited the country in early November to conduct on-site inspections of potential lithium projects and explore other business opportunities.

China’s two largest lithium mining companies, Tianqi Lithium Corp. and Ganfeng Lithium Co., said they had no information to disclose about the alleged visits.

China has yet to recognize the Taliban, but is strengthening ties with its administration and has pledged to help rebuild the country. Beijing wants to expand its influence in the region and prevent both militants and refugees from spreading beyond Afghanistan’s borders.

Beijing has current contracts to exploit the Afghan mineral deposits. In the mid-2000s, investors led by the state-owned Metallurgical Corp. of China Ltd. won an offer valued at nearly US $ 3 billion to develop copper from the Mes Aynak mines near the capital Kabul, though little progress has been made in the intervening years.

China and the Taliban are seeking “friendly relations and we believe that will open an environment conducive to Chinese companies” to invest in the country, Alokozay said.