After it calibrated its policy to recognise the Taliban government, China is eyeing to clinch lucrative projects to exploit mineral-rich Afghanistan, especially the trillions of dollars worth of rare-earth metals
Rare-earth metals in Afghanistan were estimated to be worth anywhere between one trillion dollars to three trillion dollars in 2020, news agency PTI quoted a CNBC report this week. The report was based on Ahmad Shah Katawazai’s comment, who is a former diplomat at the Afghan Embassy in Washington.
According to the report, rare earth metals are a key component for a host of advanced technologies.
On Wednesday, China said it will decide on extending diplomatic recognition to the Taliban in Afghanistan after the formation of the government in the country, which it hoped would be “open, inclusive and broadly representative”.
The rare earth metals are used in rechargeable batteries for electric and hybrid cars, advanced ceramics, computers, DVD players, wind turbines among others.
According to a report by the Centre for Strategic and International Studies (CSIS), China provides more than 85% of the world’s rare earth and is home to about two-thirds of the global supply of rare metals.
The CNBC report drew criticism from the Chinese media.
“While the US’ bungled and embarrassing withdrawal from Afghanistan is still shocking the world, the American media has already started to worry about possible cooperation between the Afghan Taliban and China, especially when it comes to Afghanistan’s rare-earth resources,” PTI quoted a report in the state-run Global Times as saying.
In 2019, China and Afghanistan signed a Memorandum of Understanding (MOU) on mining industry cooperation. Current projects include a copper mine in Aynak which was launched in the same year.
Later in 2011, an oilfield project in Afghanistan invested by China National Petroleum Corporation was officially signed, the report said.
As of the end of 2020, China’s accumulated non-financial direct investment in Afghanistan stood at USD 630 million.
