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Excavating a future in Afghanistan
The country sits atop oil, gas and mineral deposits that could be worth a trillion dollars. But building a commercial mining industry will be a rocky road.
Los Angeles Times By Alexandra Zavis March 24, 2013
TAGHAR, Afghanistan - In a rugged valley outside Kabul, where mud-walled villages blend into bare scrubland, a team of international mining experts and Afghan trainees set up camp over the winter to probe the region's mineral resources.
Protected by armed guards, they spent three months drilling test holes into the snowcapped peaks, as curious goat- and sheepherders looked on.
"We hit copper damn near everywhere," said Robert Miller, a Colorado-based mining executive recruited by the Pentagon to help advise Afghan authorities on how to develop the country's natural resources. "It's a very encouraging finding."
Studies have found that Afghanistan, one of the world's poorest and most war-torn countries, sits atop hydrocarbon and mineral deposits that could be worth more than a trillion dollars. The Afghan government and its U.S. backers are counting on this largely untapped wealth — including oil, gas, copper, iron, gold and lithium — to bring in cash and create jobs as international assistance begins to wind down.
"Afghanistan needs to develop its geology," said Najibullah Rochi, a 24-year-old geophysicist with the Afghanistan Geological Survey who was getting his first field experience at the Taghar deposit in what is known as the North Aynak mineral zone. "We need jobs and salaries. This is the way."
But industry experts caution that it will take many years and billions of dollars to build the power plants, railway lines and other infrastructure needed to extract and transport commodities from the country's mountainous terrain. Moreover, many of the mineral deposits are in the south and east of Afghanistan, where the Islamist insurgency is strongest.
Afghanistan's first attempts to develop a modern mining industry have been plagued by security threats and rumors of corruption, underscoring the difficulty the country is likely to face in unlocking its mineral riches.
Miller said he had no doubt about the country's potential.
"In my opinion, Afghanistan could replace Chile as the largest exporter of copper," he said. "Can they put it together? That's the trillion-dollar question."
Managed poorly, Afghanistan's mineral riches could instead become a source of more conflict and graft, another example of the "resource curse" that has afflicted countries such as Angola, Cambodia and Democratic Republic of Congo.
The World Bank estimates that 97% of Afghanistan's economy is tied to international military and donor spending. Although the United States and other major donors have pledged not to abandon the country, they are tired of government corruption and have economic difficulties of their own. Support for Afghanistan could fall sharply after most foreign forces leave by the end of next year.
Afghanistan's natural resources appear to represent the country's best hope for self-sufficiency. A report prepared by the Pentagon in 2010, based on research by the U.S. Geological Survey, identified mineral and oil reserves worth nearly $1 trillion. Afghan authorities called that estimate conservative and put the figure at $3 trillion.
They hope to sell the development rights to many of the deposits to international mining companies.
A $3-billion agreement was reached in 2008 with a Chinese consortium to develop a copper deposit in Logar province, south of Taghar. Negotiations are underway with companies in India and Canada for rights to one of the world's largest iron ore deposits, in Bamian province. The government is also completing contracts for major copper, gold and oil concessions.
Wahidullah Shahrani, Afghanistan's minister of mines, said the mining and petroleum sectors could bring in as much as $1.5 billion in annual government revenue, create 150,000 jobs and contribute $5 billion to the economy annually by 2016.
"Not in your wildest dreams," Miller said; it could take 10 to 15 years for major projects to be readied.
Afghans have engaged in small-scale "artisanal" mining for centuries, but the country does not have large commercial operations.
Major construction has not started at the Mes Aynak deposit south of Taghar, a joint venture by the state-run China Metallurgical Group Corp., or MCC, and Jiangxi Copper Co. The site holds ancient Buddhist ruins and artifacts. Archaeologists were given until the end of last year to salvage what they could. But in an interview with The Times, Shahrani said mining would not be allowed to begin until he received clearance from the Ministry of Information and Culture, which he expects by May.
Another reason for the delay is that several villages must be relocated, MCC said in its latest earnings report.
Last month, the government celebrated the completion of a mosque, schools and other infrastructure at a planned relocation site for displaced villagers. But Mullah Sharbat Ahmadzai, a local elder who sits on a community advisory council for the project, said residents who vacated their homes years ago were still waiting for jobs and for land to rebuild on. Now others don't want to cooperate.
"Neither the villagers around the mine site nor the government are benefiting from the project," he said.
Security has also been a problem. Land mines had to be cleared, and last summer the consortium suspended work after about 150 Chinese employees fled insurgent rocket attacks. Shahrani said authorities then increased the number of security personnel and the workers returned.
Construction hasn't begun on key support infrastructure, including a railway line and a coal-fired power plant. In the meantime, as many as 5,000 Afghans are out of work because authorities last summer put a stop to informal coal mining in Bamian's Kahmard district to make way for the Chinese venture, said the provincial governor, Habiba Sarabi.
Frustration over the lack of work and coal — used here for cooking and heating during the winter — may have contributed to a rise in militant attacks last year, Sarabi said. But she said security had improved since authorities increased the number of Afghan army patrols and checkpoints in the area.
Shahrani said the central government would not tolerate illegal mining, because of health, safety and environmental concerns, as well as the use of child labor. But he said authorities were developing a policy framework that would permit some artisanal mining.
He said he expected production at Mes Aynak to begin in 2014. But some Western advisors privately question whether the Chinese companies may be holding back because of concern about the withdrawal of foreign troops and unfavorable market conditions. Company officials did not respond to requests for comment.
So far, major Western mining firms have shown limited interest in Afghanistan. Some have complained about high royalty fees. There is also concern about the country's mining law, which does not guarantee companies the right to develop deposits they explore. Revisions aimed at reassuring foreign investors stalled last summer over Cabinet objections that the changes did not protect the country's interests. Shahrani said he expected a new law to be passed this year.
Investors also worry about Afghan corruption. Shahrani's predecessor was sidelined after news reports alleged that he had accepted a $30-million bribe for the Mes Aynak tender, an accusation he denied.
Questions were also raised about a northern oil concession awarded to China National Petroleum Corp. and Watan Group, an Afghan company with connections to President Hamid Karzai's family. Critics included Abdul Rashid Dostum, a former warlord whose supporters were accused by government officials of intimidating Chinese workers and demanding kickbacks. A statement issued by Karzai's office said U.S. and British experts audited the tender and found the process was fair.
"All the necessary measures have been taken to make sure that our deals are clean, transparent, auditable, and they will be in line with international practices," Shahrani said.
Afghanistan signed up for the Extractive Industries Transparency Initiative, an international effort that aims to improve governance in resource-rich countries by publishing payments made by oil, natural gas and mining companies. Last year, the government published more than 200 mining and energy contracts on the Ministry of Mines website.
Juman Kubba, a researcher with the London-based watchdog group Global Witness, welcomed the steps but said more safeguards were needed.
"One of our concerns is that the Aynak contract still has not been published. So who is going to check it's actually being implemented?" she said. "There are so many international lessons of what can go wrong."
alexandra.zavis@latimes.com
Special correspondent Hashmat Baktash in Kabul and Tommy Yang in The Times' Beijing bureau contributed to this report.
India to ink transit agreement with Iran to ship goods to Afghanistan
Press TV March 24, 2013
India is set to sign a transit agreement with Iran, and invest over USD 100 million in the southeastern Iranian port city of Chabahar in order to facilitate the transportation of commodities to Afghanistan.
Unnamed sources in India said on Sunday that it would be in India’s interest to take advantage of the potentials of Iran's Chabahar port to ensure a link into Afghanistan for its goods, The Indian Express reported.
The report added that the Indian government plans to improve the berthing facility of Chabahar port and expand its container terminal.
Chabahar port -- located 72 kilometers (44 miles) west of Pakistan's Gwadar port -- holds immense strategic and economic significance for India.
The port is already connected to the city of Zaranj in Afghanistan's southwestern province of Nimruz and can serve as India's entry point to Afghanistan, Central Asia and beyond.
India, Iran and Afghanistan have signed an agreement to give Indian goods, heading for Central Asia and Afghanistan, preferential treatment and tariff reductions at Chabahar.
Iran behind water resources destruction in Afghanistan
Khaama Press 24 Mar 2013
The neighboring countries of Afghanistan, specifically Iran and Pakistan with the inspiration of MI6 are responsible for the current crisis in Afghanistan and thoroughly involved in creating barriers for the creation of a strong political leadership in the country.
Iran has made major investments between 1370s and 1380s in a bid to achieve its strategic goals by creating divisions, boosting war and funding internal elements in Afghanistan.
Through its political tactics implemented between 1371 to 1380, Iran managed to successfully complete the construction of water resources infrastructures in its own national interest and block water routes to Afghanistan on permanent basis.
According to reports around 500 billion cubic meter of water which is equivalent to $500 billion flows to neighboring countries of Afghanistan, specifically to Iran.
During the past ten years the Iranian government breaching the earlier agreements has turned Helmand waters towards Iran by drilling at least 12 water canals. Iran has also created a water dam on Hamon to prevent flow of water back to Afghanistan. Previously water was flowing back to Gudzard area in case of increase in Helmand waters.
Two major water storages were also built by Iran on Sarkhas area located between the bordering regions of Afghanistan, Turkmenistan and Iran. The storages built under an old agreement with the Turkmenistan was aimed at turning the flow of water which comes from Bala Morghab area to Turkmenistan.
The flow of water automatically goes towards the Srakhas water storage in Iran after the water storage built by Iran in Turkmenistan is filled, which shows the main motive of the Iranian government for spending millions of money for constructing water dam in Sarkhas area of Turkmenistan.
This will incur a major loss to the water resources of Afghanistan as the flow of water is blocked from Sarkhas water storage to flow back inside the Afghan soil.
Iran also creates barriers for the construction of two major water dams including Kamal Khan dam and Salma dam in western Afghanistan through its cheating diplomacy and by funding and using internal factors in Afghanistan in a bid to prevent the Afghan government from using the current opportunities which is available with the presence of international community.
According to reports a number of Iranian spies working as engineers in Salma dam project are struggling to prevent the development work of the dam.
On the other hand the government of Iran and MI6 prevented the construction of 3,400 kilometers of gas pipeline from Sarkhas bordering region towards the Turkmenistan border in a bid to main the current war in Afghanistan. The gas pipeline has been constructed inside the Iranian soil on the bordering region between the countries which continues until Baluchistan bordering region. The bordering cities of Iran are connected with the Karachi port which makes the transportation of Iran and Turkmenistan energy easier to India.
The tactics of Iran paved the way for sabotaging the TAPI gas pipeline project which was coming from Turkmenistan to Afghanistan and Pakistan, and this helped Iran to construct its own gas pipeline from Sarkhas to Pakistan.
The government of Afghanistan during the past 12 years has been helpless to construct water dams in the country despite the presence of international community that pledged billions in aid to Afghanistan. The issues pose a major threat towards the water resources of Afghanistan as main waters of Afghanistan are flowing out of the country despite Afghanistan.
Unfortunately the political figures of Afghanistan are busy with their own political set ups that helps the implementation of new missions by MI6, CIA and Iran in Afghanistan and the region.
Equipment drawdown from Afghanistan an ‘enormous’ undertaking
Stars and Stripes By Hendrick Simoes March 23, 2013
KUWAIT - With the pace of NATO’s drawdown from Afghanistan accelerating, the international coalition is faced with the unprecedented task of removing tens of thousands of tons of equipment and vehicles from a country still very much at war.
For the U.S. military, moving 35,000 vehicles and 95,000 shipping containers full of cargo to various bases in America or overseas is easier said than done.
Maj. Gen. Kurt Stein, commander of the 1st Theater Sustainment Command, said during a visit to Kuwait last month that getting the supplies and equipment out of Afghanistan will be an “enormous” mission.
“It will be historic, it’s nothing like we have ever done in the history of our military.” The 1st TSC has a leading role in the equipment drawdown, or as they refer to it — “retrograde.”
Afghanistan is landlocked, and transit routes to the nearest seaport in Pakistan are long, politically tenuous and vulnerable to attack. The alliance’s northern supply route, snaking overland through Central Asia and Russia to Poland and the Baltics, also is difficult due to the logistics of coordinating truck and rail transport.
Stein, who also oversaw the pull-out of equipment from Iraq, said there could be no comparison between the complexity of the two operations.
In Iraq, most of the gear was driven down regular highways into nearby Kuwait where logistics hubs were set up to ship it back to the U.S. after the last combat troops left Iraq. Kuwait also was a safe haven where the vehicles and equipment could be prepared without having to worry about enemy attacks.
In contrast, Afghanistan’s mountainous terrain, primitive winding roads and the danger of attack present a much more daunting challenge for planners.
And, there is no neighboring country with support facilities such as were available in Kuwait.
And while NATO allies plan on moving much equipment through the northern route, Stein maintains it will not figure significantly in the U.S. withdrawal. Current plans call for most of the gear to be trucked through the Pakistani port of Karachi, and then shipped onward.
Another option — an expensive one — is to fly the equipment out.
We will use “all of the above” methods, said Stein. “Some will go straight back, but very little. Our goal is to put most of it on ships. We don’t want to fly it all the way back to the United States,” he said, citing the cost to taxpayers. The goal, offiicals said, is to move the equipment out as cost effectively as possible.
The plan is to fly equipment to bases in Jordan, Dubai and Oman, where the equipment can be taken to sea ports and sailed back to the U.S. But officials gave no estimates as to what would be transferred where.
First TSC anticipates having to retrograde 1,500 vehicles and 1,000 20-foot shipping containers a month to finish by the time the U.S. completes withdrawal of combat forces at the end of 2014.
However, Stein stresses only non-essential equipment is being moved out of Afghanistan and the main drawdown has yet to begin.
“What we’re really doing is setting the conditions for success for our future retrograde. So we’re making sure our policies and procedures, and authorities are in place to do what we have to do once the big retrograde process might begin,” Stein said, without specifying when that would be.
Troops in Afghanistan may find themselves fighting as they move equipment out of Afghanistan, a key difference from the Iraq drawdown.
However, analysts and military officials say it’s unlikely the insurgents will actively seek to disrupt the withdrawal since it’s in their strategic interest that the coalition forces leave as quickly as possible.
Stein is convinced the proper security will be in place all the way to the end of the drawdown.
And, despite all the challenges, Stein is confident the U.S. can meet its December 2014 goal: “We might still be doing a little bit of work. But it will be about that time,” he said.
“There is no other organization in the world besides the U.S. military that can do this. There is no doubt about that.”
simoes.hendrick@stripes.com
Afghan warlord’s son held over civilian deaths in Parwan
By SAYED JAWAD - 24 Mar 2013, 9:49 pm Khaama Press
Afghan police forces arrested at least four people including son of Khwaja Mohammad Nabi, former Afghan Afghan warlord in northern Afghanistan in connection to an incident that result in deaths of three civilians during Nawroz — New Year celebration, the officials said.
At least three others were also injured the gunfire during Nawroz celebrations, the officials added.
Provincial governor for northern Parwan province of Afghanistan Abdul Basir Salangi confirming the report said, “At least four suspected individuals including Ferdaw — son of Khwaja Nabi, former Afghan warlord have been arrested in connection to the incdient.”
Mr. Salangi urgig the National Security Council of Afghanistan to strictly follow the incident said, “The cases of the four individuals including the son of the influential warlord will be sent to Attorney General tomorrow.”
According to reports that incident took place between Afghan police forces and Ferdaws while the security forces were looking to search his vehicle. A number of security guards of a lawmaker, Mir Rahman Rahmani were also involved in the clashes that led to civilians casualties.
In the meantime provincial council officials for Parwan province also accused Ferdaws for creating problems to local residents in this province.
Abdul Basir Salangi expressing doubts regarding the capabilities of Afghan security forces to take action against Ferdaws said people are still concerned that police and judiciary institutions will remain helpless to take actions against him.
Deputy provincial council chief Abdul Zahir Salangi also said, “Son of former Afghan warlord Khawajah Nabi is involved in major cases including murder of ordinary people, and the people of Parwan province are expecting strict actions against him which has not happened so far.”
1 civilian killed, 4 injured in W. Afghanistan
HERAT, March 24 (Xinhua) -- One civilian was killed and four others sustained injuries in Shindand district of Herat province 640 km west of Afghan capital Kabul on Sunday, a local official confirmed.
"The police ordered a civilian car for checking in a checkpoint in Shindand district this morning but the driver ignored the order and continued to drive which prompted the police to doubt and opened fire, killing a commuter," spokesman for provincial administration Mohiudin Ghori told Xinhua.
However, the locals took to the streets in protest and began hurling stones on police, he said, adding the police opened fire injuring four protesters.
Civilians often bear the brunt of conflicts in Afghanistan as 2,754 non-combatants had been killed in the conflict-related incidents in the militancy-hit country in 2012, a UN report released here in February said.
Pakistan awards Pride of Performance to Afghan singer Naghma
By GHANIZADA - 24 Mar 2013, 8:46 pm Khaama Press
Prominent Afghan singer Shahperai Naghma received the best civil award from the Pakistani president Asif Ali Zardari for her best performance in conveying the peace message.
The civil, military awards were conferred by president Asif Ali Zardari on the eve of Pakistan Day celebrations on Saturday during an an investiture ceremony held at Aiwan-e-Sadr in Islamabad to award civil and military awards as part of the Pakistan Day celebrations.
Other high level Pakistani officials including Prime Minister Raja Pervez Ashraf‚ Chairman Senate Syed Nayyar Hussain Bokhari‚ Speaker National Assembly Dr. Fehmida Mirza‚ former members of the Federal Cabinet‚ Senators‚ services chiefs‚ foreign diplomats and senior civil and military officials also attended the ceremony.
Afghan singer Shahperai Naghma received the president’s pride of permance award along with Shahida Minni and Shahida Latif.
Naghma was born as Shahperai (Fairy) on January 1, 1964, in Kandahar, Afghanistan. She belongs to the Pashtun ethnic group and is one the prominent Afghan singer who started in the early 1970s.
Naghma sings in Pashto and Dari (Persian). Her music is popular in Afghanistan, Pakistan and Tajikistan.
Karzai Ushers in New School Year
TOLOnews.com By Sharif Amiry Saturday, 23 March 2013
President Hamid Karzai ushered in the new school year with the ringing of the first bell and a speech calling on the Taliban to abandon the practice of targeting schools for political ends.
The forced closure and arson of schools is hostility against the children of Afghanistan without any Islamic justification, Karzai said Saturday.
"If the Taliban are committed to Islam, the religion's edict on education is clear – that is, to learn from the cradle to the grave. And if they call themselves Afghan, then an Afghan's child has the same right to education as a Pakistani's," Karzai said in his address to those gathered at Amani high school in Kabul.
Karzai spoke of his respect for teachers and how he would have preferred to be one instead of being a president for the last decade.
"I would have been younger if I, Hamid Karzai, was a teacher and not a president for the last ten years. I would have been more calm and could have served this nation better," he said, adding that teachers are a foundation for society.
The president also pointed out the challenges Afghanistan's education system has faced.
"Our schools, over the past ten years, have been attacked. In Kandahar, acid was thrown on girls. In Takhar, there were attempts for poisoning girls, and in other places schools were burnt or shut down," he added.
The Minister of Education Farooq Wardak said, however, that he does not believe it is the Taliban who is attacking schools.
"Whether they burned the schools or not, it will be blamed in their [Taliban] name. They should stop those who are doing this," he said.
According to statistics from the Persian year 1391 (22 March 2012 to 21 March 2013), more than 3 million children were stopped from going to school because of the violence and there are still more than 450 schools closed in nine provinces of Afghanistan.
Mostly insurgents have been blamed for the issue.
More than 1.5 million new students are expected to start school in Afghanistan this new Persian year 1392, bringing the total number of the country's students to 10.5 million.
Doubts Over Bagram Handover Ahead of Deadline
TOLOnews.com By Saleha Sadat Saturday, 23 March 2013
The head of Afghanistan's parliamentary defence committee on Saturday said that he does not believe the US will transfer all control of Bagram prison and its detainees to the Afghan government.
With two days until the transfer deadline, after President Hamid Karzai granted an extra week to the US last Monday, lawmaker Humayun Humayun said he does not believe the additional time will deliver all Karzai's demands.
"I think that US will not surrender the dangerous prisoners to Afghanistan because the US fears that Afghanistan will release them, so the US will keep those prisoners," Humayun told TOLOnews.
After last year's official handover in September of about 3000 prisoners, the US military is understood to have retained control of around 600 prisoners it deemed dangerous.
More than six months have passed without the Kabul and Washington coming to an agreement on the matter.
However, the presidential office was more positive saying that Karzai's meetings with the top US Commander in Afghanistan Gen Joseph Dunford were fruitful.
"In the meeting, the US side stressed its commitment to handing over Bagram prison to the Afghan Government and all the legal and technical problems have been addressed so the transition will happen soon," the presidential deputy spokesman Mohammad Fayiq Wahidi told TOLOnews in a phone interview.
Afghan military analyst Noor ul Haq Olomi said Karzai's insistence on the innocence of some of Bagram's prisoners impacted negotiations with the Americans.
"The Afghan government's contradictory position has negatively affected the [US] surrender of the prisoners [to Afghan control]," he told TOLOnews. "The president repeatedly said that these prisoners are innocent and will be released, so the US is concerned about this point."
It is said that the roughly 3000 prisoners handed over in September have links to the Taliban and Al Qaida. However a further 600 prisoners including 50 foreigners remain under US guard.
Saffron Exports Almost Doubled Last Year: Officials
TOLOnews.com By Shahla Murtazaie Saturday, 23 March 2013
Saffron exports ballooned to more than 2.8 tonnes in the past year – a 95 percent increase on the previous corresponding period, government officials said Saturday.
Persian year 1391 (22 March 2011- 21 March 2012) saw an improvement in the product packaging and better marketing, which were key towards almost doubling the export of the spice, according to the Export Promotion Agency of Afghanistan (EPAA).
"There has been an increase in 1391 compared to that of 1390, for packing, process, and the marketing carried out," said Sayed Azim Mustafa Hashimi, head of the EPAA's Raisins, Fruits, and Vegetables department.
Afghanistan's saffron is mainly exported to Italy, Australia, Canada, and China, the department officials said.
The product secured first place for its quality from among 16 other countries last year in a saffron fair in France.
Parliament to Re-Summon 11 Ministers Over 2011 Budget
TOLOnews.com Saturday, 23 March 2013
Afghanistan's Parliament will again summon 11 government ministers whose ministries did not spend more than 50 percent of their development budgets in 2011, the Speaker of the Lower House said Saturday.
The 11 ministers of interior, defence, economy, commerce, water and energy, education, urban development, mining, higher education, anti-narcotics, and information and culture were initially summoned late last year to answer for their ministries' budget spending from March 2011-March 2012 (Persian year 1390).
The debate among lawmakers over whether to dismiss the 11 ministers began in December but was never resolved. It restarted on Saturday with some lawmakers saying the parliament needed to follow through with its decisions or risk losing the faith of the people.
House speaker Abdul Raouf Ibrahimi said Saturday the 11 ministers to will be summoned again and decisive action will be taken soon.
"The people are waiting to see how the Parliament will take action about the 11 ministers," said lawmaker Said Fatema Aziz.
"[The summons] was supposed to be done last year, but because of the budget talks, the house did not take action over the ministers," said lawmaker Sayed Hussian Anwari.
The 11 ministers were summoned to appear before parliament last year to justify why their respective ministries did not spend more than 50 percent of their development budgets. However, only seven of the 11 showed up and so no decision was taken by parliament.
The four ministers – including the defence, higher education and urban development ministers – did not turn up at the summons because they were not ministers during the time of the budget spending in question.
Parliament then became divided over whether the four should be summoned at all.
Some lawmakers continue to press for the four ministers appointed after 2011 to appear before parliament because they say the ministers still need to explain their ministries' management of the funds. However, others say only the seven who were in charge at the time of the spending should be held accountable.
The ministers of mines, education and the interior all dispute the charge that they spent "less than 50 percent", claiming they did spend more than 50 percent of the development funds in 2011.
www.afghanistannewscenter.com
The country sits atop oil, gas and mineral deposits that could be worth a trillion dollars. But building a commercial mining industry will be a rocky road.
Los Angeles Times By Alexandra Zavis March 24, 2013
TAGHAR, Afghanistan - In a rugged valley outside Kabul, where mud-walled villages blend into bare scrubland, a team of international mining experts and Afghan trainees set up camp over the winter to probe the region's mineral resources.
Protected by armed guards, they spent three months drilling test holes into the snowcapped peaks, as curious goat- and sheepherders looked on.
"We hit copper damn near everywhere," said Robert Miller, a Colorado-based mining executive recruited by the Pentagon to help advise Afghan authorities on how to develop the country's natural resources. "It's a very encouraging finding."
Studies have found that Afghanistan, one of the world's poorest and most war-torn countries, sits atop hydrocarbon and mineral deposits that could be worth more than a trillion dollars. The Afghan government and its U.S. backers are counting on this largely untapped wealth — including oil, gas, copper, iron, gold and lithium — to bring in cash and create jobs as international assistance begins to wind down.
"Afghanistan needs to develop its geology," said Najibullah Rochi, a 24-year-old geophysicist with the Afghanistan Geological Survey who was getting his first field experience at the Taghar deposit in what is known as the North Aynak mineral zone. "We need jobs and salaries. This is the way."
But industry experts caution that it will take many years and billions of dollars to build the power plants, railway lines and other infrastructure needed to extract and transport commodities from the country's mountainous terrain. Moreover, many of the mineral deposits are in the south and east of Afghanistan, where the Islamist insurgency is strongest.
Afghanistan's first attempts to develop a modern mining industry have been plagued by security threats and rumors of corruption, underscoring the difficulty the country is likely to face in unlocking its mineral riches.
Miller said he had no doubt about the country's potential.
"In my opinion, Afghanistan could replace Chile as the largest exporter of copper," he said. "Can they put it together? That's the trillion-dollar question."
Managed poorly, Afghanistan's mineral riches could instead become a source of more conflict and graft, another example of the "resource curse" that has afflicted countries such as Angola, Cambodia and Democratic Republic of Congo.
The World Bank estimates that 97% of Afghanistan's economy is tied to international military and donor spending. Although the United States and other major donors have pledged not to abandon the country, they are tired of government corruption and have economic difficulties of their own. Support for Afghanistan could fall sharply after most foreign forces leave by the end of next year.
Afghanistan's natural resources appear to represent the country's best hope for self-sufficiency. A report prepared by the Pentagon in 2010, based on research by the U.S. Geological Survey, identified mineral and oil reserves worth nearly $1 trillion. Afghan authorities called that estimate conservative and put the figure at $3 trillion.
They hope to sell the development rights to many of the deposits to international mining companies.
A $3-billion agreement was reached in 2008 with a Chinese consortium to develop a copper deposit in Logar province, south of Taghar. Negotiations are underway with companies in India and Canada for rights to one of the world's largest iron ore deposits, in Bamian province. The government is also completing contracts for major copper, gold and oil concessions.
Wahidullah Shahrani, Afghanistan's minister of mines, said the mining and petroleum sectors could bring in as much as $1.5 billion in annual government revenue, create 150,000 jobs and contribute $5 billion to the economy annually by 2016.
"Not in your wildest dreams," Miller said; it could take 10 to 15 years for major projects to be readied.
Afghans have engaged in small-scale "artisanal" mining for centuries, but the country does not have large commercial operations.
Major construction has not started at the Mes Aynak deposit south of Taghar, a joint venture by the state-run China Metallurgical Group Corp., or MCC, and Jiangxi Copper Co. The site holds ancient Buddhist ruins and artifacts. Archaeologists were given until the end of last year to salvage what they could. But in an interview with The Times, Shahrani said mining would not be allowed to begin until he received clearance from the Ministry of Information and Culture, which he expects by May.
Another reason for the delay is that several villages must be relocated, MCC said in its latest earnings report.
Last month, the government celebrated the completion of a mosque, schools and other infrastructure at a planned relocation site for displaced villagers. But Mullah Sharbat Ahmadzai, a local elder who sits on a community advisory council for the project, said residents who vacated their homes years ago were still waiting for jobs and for land to rebuild on. Now others don't want to cooperate.
"Neither the villagers around the mine site nor the government are benefiting from the project," he said.
Security has also been a problem. Land mines had to be cleared, and last summer the consortium suspended work after about 150 Chinese employees fled insurgent rocket attacks. Shahrani said authorities then increased the number of security personnel and the workers returned.
Construction hasn't begun on key support infrastructure, including a railway line and a coal-fired power plant. In the meantime, as many as 5,000 Afghans are out of work because authorities last summer put a stop to informal coal mining in Bamian's Kahmard district to make way for the Chinese venture, said the provincial governor, Habiba Sarabi.
Frustration over the lack of work and coal — used here for cooking and heating during the winter — may have contributed to a rise in militant attacks last year, Sarabi said. But she said security had improved since authorities increased the number of Afghan army patrols and checkpoints in the area.
Shahrani said the central government would not tolerate illegal mining, because of health, safety and environmental concerns, as well as the use of child labor. But he said authorities were developing a policy framework that would permit some artisanal mining.
He said he expected production at Mes Aynak to begin in 2014. But some Western advisors privately question whether the Chinese companies may be holding back because of concern about the withdrawal of foreign troops and unfavorable market conditions. Company officials did not respond to requests for comment.
So far, major Western mining firms have shown limited interest in Afghanistan. Some have complained about high royalty fees. There is also concern about the country's mining law, which does not guarantee companies the right to develop deposits they explore. Revisions aimed at reassuring foreign investors stalled last summer over Cabinet objections that the changes did not protect the country's interests. Shahrani said he expected a new law to be passed this year.
Investors also worry about Afghan corruption. Shahrani's predecessor was sidelined after news reports alleged that he had accepted a $30-million bribe for the Mes Aynak tender, an accusation he denied.
Questions were also raised about a northern oil concession awarded to China National Petroleum Corp. and Watan Group, an Afghan company with connections to President Hamid Karzai's family. Critics included Abdul Rashid Dostum, a former warlord whose supporters were accused by government officials of intimidating Chinese workers and demanding kickbacks. A statement issued by Karzai's office said U.S. and British experts audited the tender and found the process was fair.
"All the necessary measures have been taken to make sure that our deals are clean, transparent, auditable, and they will be in line with international practices," Shahrani said.
Afghanistan signed up for the Extractive Industries Transparency Initiative, an international effort that aims to improve governance in resource-rich countries by publishing payments made by oil, natural gas and mining companies. Last year, the government published more than 200 mining and energy contracts on the Ministry of Mines website.
Juman Kubba, a researcher with the London-based watchdog group Global Witness, welcomed the steps but said more safeguards were needed.
"One of our concerns is that the Aynak contract still has not been published. So who is going to check it's actually being implemented?" she said. "There are so many international lessons of what can go wrong."
alexandra.zavis@latimes.com
Special correspondent Hashmat Baktash in Kabul and Tommy Yang in The Times' Beijing bureau contributed to this report.
India to ink transit agreement with Iran to ship goods to Afghanistan
Press TV March 24, 2013
India is set to sign a transit agreement with Iran, and invest over USD 100 million in the southeastern Iranian port city of Chabahar in order to facilitate the transportation of commodities to Afghanistan.
Unnamed sources in India said on Sunday that it would be in India’s interest to take advantage of the potentials of Iran's Chabahar port to ensure a link into Afghanistan for its goods, The Indian Express reported.
The report added that the Indian government plans to improve the berthing facility of Chabahar port and expand its container terminal.
Chabahar port -- located 72 kilometers (44 miles) west of Pakistan's Gwadar port -- holds immense strategic and economic significance for India.
The port is already connected to the city of Zaranj in Afghanistan's southwestern province of Nimruz and can serve as India's entry point to Afghanistan, Central Asia and beyond.
India, Iran and Afghanistan have signed an agreement to give Indian goods, heading for Central Asia and Afghanistan, preferential treatment and tariff reductions at Chabahar.
Iran behind water resources destruction in Afghanistan
Khaama Press 24 Mar 2013
The neighboring countries of Afghanistan, specifically Iran and Pakistan with the inspiration of MI6 are responsible for the current crisis in Afghanistan and thoroughly involved in creating barriers for the creation of a strong political leadership in the country.
Iran has made major investments between 1370s and 1380s in a bid to achieve its strategic goals by creating divisions, boosting war and funding internal elements in Afghanistan.
Through its political tactics implemented between 1371 to 1380, Iran managed to successfully complete the construction of water resources infrastructures in its own national interest and block water routes to Afghanistan on permanent basis.
According to reports around 500 billion cubic meter of water which is equivalent to $500 billion flows to neighboring countries of Afghanistan, specifically to Iran.
During the past ten years the Iranian government breaching the earlier agreements has turned Helmand waters towards Iran by drilling at least 12 water canals. Iran has also created a water dam on Hamon to prevent flow of water back to Afghanistan. Previously water was flowing back to Gudzard area in case of increase in Helmand waters.
Two major water storages were also built by Iran on Sarkhas area located between the bordering regions of Afghanistan, Turkmenistan and Iran. The storages built under an old agreement with the Turkmenistan was aimed at turning the flow of water which comes from Bala Morghab area to Turkmenistan.
The flow of water automatically goes towards the Srakhas water storage in Iran after the water storage built by Iran in Turkmenistan is filled, which shows the main motive of the Iranian government for spending millions of money for constructing water dam in Sarkhas area of Turkmenistan.
This will incur a major loss to the water resources of Afghanistan as the flow of water is blocked from Sarkhas water storage to flow back inside the Afghan soil.
Iran also creates barriers for the construction of two major water dams including Kamal Khan dam and Salma dam in western Afghanistan through its cheating diplomacy and by funding and using internal factors in Afghanistan in a bid to prevent the Afghan government from using the current opportunities which is available with the presence of international community.
According to reports a number of Iranian spies working as engineers in Salma dam project are struggling to prevent the development work of the dam.
On the other hand the government of Iran and MI6 prevented the construction of 3,400 kilometers of gas pipeline from Sarkhas bordering region towards the Turkmenistan border in a bid to main the current war in Afghanistan. The gas pipeline has been constructed inside the Iranian soil on the bordering region between the countries which continues until Baluchistan bordering region. The bordering cities of Iran are connected with the Karachi port which makes the transportation of Iran and Turkmenistan energy easier to India.
The tactics of Iran paved the way for sabotaging the TAPI gas pipeline project which was coming from Turkmenistan to Afghanistan and Pakistan, and this helped Iran to construct its own gas pipeline from Sarkhas to Pakistan.
The government of Afghanistan during the past 12 years has been helpless to construct water dams in the country despite the presence of international community that pledged billions in aid to Afghanistan. The issues pose a major threat towards the water resources of Afghanistan as main waters of Afghanistan are flowing out of the country despite Afghanistan.
Unfortunately the political figures of Afghanistan are busy with their own political set ups that helps the implementation of new missions by MI6, CIA and Iran in Afghanistan and the region.
Equipment drawdown from Afghanistan an ‘enormous’ undertaking
Stars and Stripes By Hendrick Simoes March 23, 2013
KUWAIT - With the pace of NATO’s drawdown from Afghanistan accelerating, the international coalition is faced with the unprecedented task of removing tens of thousands of tons of equipment and vehicles from a country still very much at war.
For the U.S. military, moving 35,000 vehicles and 95,000 shipping containers full of cargo to various bases in America or overseas is easier said than done.
Maj. Gen. Kurt Stein, commander of the 1st Theater Sustainment Command, said during a visit to Kuwait last month that getting the supplies and equipment out of Afghanistan will be an “enormous” mission.
“It will be historic, it’s nothing like we have ever done in the history of our military.” The 1st TSC has a leading role in the equipment drawdown, or as they refer to it — “retrograde.”
Afghanistan is landlocked, and transit routes to the nearest seaport in Pakistan are long, politically tenuous and vulnerable to attack. The alliance’s northern supply route, snaking overland through Central Asia and Russia to Poland and the Baltics, also is difficult due to the logistics of coordinating truck and rail transport.
Stein, who also oversaw the pull-out of equipment from Iraq, said there could be no comparison between the complexity of the two operations.
In Iraq, most of the gear was driven down regular highways into nearby Kuwait where logistics hubs were set up to ship it back to the U.S. after the last combat troops left Iraq. Kuwait also was a safe haven where the vehicles and equipment could be prepared without having to worry about enemy attacks.
In contrast, Afghanistan’s mountainous terrain, primitive winding roads and the danger of attack present a much more daunting challenge for planners.
And, there is no neighboring country with support facilities such as were available in Kuwait.
And while NATO allies plan on moving much equipment through the northern route, Stein maintains it will not figure significantly in the U.S. withdrawal. Current plans call for most of the gear to be trucked through the Pakistani port of Karachi, and then shipped onward.
Another option — an expensive one — is to fly the equipment out.
We will use “all of the above” methods, said Stein. “Some will go straight back, but very little. Our goal is to put most of it on ships. We don’t want to fly it all the way back to the United States,” he said, citing the cost to taxpayers. The goal, offiicals said, is to move the equipment out as cost effectively as possible.
The plan is to fly equipment to bases in Jordan, Dubai and Oman, where the equipment can be taken to sea ports and sailed back to the U.S. But officials gave no estimates as to what would be transferred where.
First TSC anticipates having to retrograde 1,500 vehicles and 1,000 20-foot shipping containers a month to finish by the time the U.S. completes withdrawal of combat forces at the end of 2014.
However, Stein stresses only non-essential equipment is being moved out of Afghanistan and the main drawdown has yet to begin.
“What we’re really doing is setting the conditions for success for our future retrograde. So we’re making sure our policies and procedures, and authorities are in place to do what we have to do once the big retrograde process might begin,” Stein said, without specifying when that would be.
Troops in Afghanistan may find themselves fighting as they move equipment out of Afghanistan, a key difference from the Iraq drawdown.
However, analysts and military officials say it’s unlikely the insurgents will actively seek to disrupt the withdrawal since it’s in their strategic interest that the coalition forces leave as quickly as possible.
Stein is convinced the proper security will be in place all the way to the end of the drawdown.
And, despite all the challenges, Stein is confident the U.S. can meet its December 2014 goal: “We might still be doing a little bit of work. But it will be about that time,” he said.
“There is no other organization in the world besides the U.S. military that can do this. There is no doubt about that.”
simoes.hendrick@stripes.com
Afghan warlord’s son held over civilian deaths in Parwan
By SAYED JAWAD - 24 Mar 2013, 9:49 pm Khaama Press
Afghan police forces arrested at least four people including son of Khwaja Mohammad Nabi, former Afghan Afghan warlord in northern Afghanistan in connection to an incident that result in deaths of three civilians during Nawroz — New Year celebration, the officials said.
At least three others were also injured the gunfire during Nawroz celebrations, the officials added.
Provincial governor for northern Parwan province of Afghanistan Abdul Basir Salangi confirming the report said, “At least four suspected individuals including Ferdaw — son of Khwaja Nabi, former Afghan warlord have been arrested in connection to the incdient.”
Mr. Salangi urgig the National Security Council of Afghanistan to strictly follow the incident said, “The cases of the four individuals including the son of the influential warlord will be sent to Attorney General tomorrow.”
According to reports that incident took place between Afghan police forces and Ferdaws while the security forces were looking to search his vehicle. A number of security guards of a lawmaker, Mir Rahman Rahmani were also involved in the clashes that led to civilians casualties.
In the meantime provincial council officials for Parwan province also accused Ferdaws for creating problems to local residents in this province.
Abdul Basir Salangi expressing doubts regarding the capabilities of Afghan security forces to take action against Ferdaws said people are still concerned that police and judiciary institutions will remain helpless to take actions against him.
Deputy provincial council chief Abdul Zahir Salangi also said, “Son of former Afghan warlord Khawajah Nabi is involved in major cases including murder of ordinary people, and the people of Parwan province are expecting strict actions against him which has not happened so far.”
1 civilian killed, 4 injured in W. Afghanistan
HERAT, March 24 (Xinhua) -- One civilian was killed and four others sustained injuries in Shindand district of Herat province 640 km west of Afghan capital Kabul on Sunday, a local official confirmed.
"The police ordered a civilian car for checking in a checkpoint in Shindand district this morning but the driver ignored the order and continued to drive which prompted the police to doubt and opened fire, killing a commuter," spokesman for provincial administration Mohiudin Ghori told Xinhua.
However, the locals took to the streets in protest and began hurling stones on police, he said, adding the police opened fire injuring four protesters.
Civilians often bear the brunt of conflicts in Afghanistan as 2,754 non-combatants had been killed in the conflict-related incidents in the militancy-hit country in 2012, a UN report released here in February said.
Pakistan awards Pride of Performance to Afghan singer Naghma
By GHANIZADA - 24 Mar 2013, 8:46 pm Khaama Press
Prominent Afghan singer Shahperai Naghma received the best civil award from the Pakistani president Asif Ali Zardari for her best performance in conveying the peace message.
The civil, military awards were conferred by president Asif Ali Zardari on the eve of Pakistan Day celebrations on Saturday during an an investiture ceremony held at Aiwan-e-Sadr in Islamabad to award civil and military awards as part of the Pakistan Day celebrations.
Other high level Pakistani officials including Prime Minister Raja Pervez Ashraf‚ Chairman Senate Syed Nayyar Hussain Bokhari‚ Speaker National Assembly Dr. Fehmida Mirza‚ former members of the Federal Cabinet‚ Senators‚ services chiefs‚ foreign diplomats and senior civil and military officials also attended the ceremony.
Afghan singer Shahperai Naghma received the president’s pride of permance award along with Shahida Minni and Shahida Latif.
Naghma was born as Shahperai (Fairy) on January 1, 1964, in Kandahar, Afghanistan. She belongs to the Pashtun ethnic group and is one the prominent Afghan singer who started in the early 1970s.
Naghma sings in Pashto and Dari (Persian). Her music is popular in Afghanistan, Pakistan and Tajikistan.
Karzai Ushers in New School Year
TOLOnews.com By Sharif Amiry Saturday, 23 March 2013
President Hamid Karzai ushered in the new school year with the ringing of the first bell and a speech calling on the Taliban to abandon the practice of targeting schools for political ends.
The forced closure and arson of schools is hostility against the children of Afghanistan without any Islamic justification, Karzai said Saturday.
"If the Taliban are committed to Islam, the religion's edict on education is clear – that is, to learn from the cradle to the grave. And if they call themselves Afghan, then an Afghan's child has the same right to education as a Pakistani's," Karzai said in his address to those gathered at Amani high school in Kabul.
Karzai spoke of his respect for teachers and how he would have preferred to be one instead of being a president for the last decade.
"I would have been younger if I, Hamid Karzai, was a teacher and not a president for the last ten years. I would have been more calm and could have served this nation better," he said, adding that teachers are a foundation for society.
The president also pointed out the challenges Afghanistan's education system has faced.
"Our schools, over the past ten years, have been attacked. In Kandahar, acid was thrown on girls. In Takhar, there were attempts for poisoning girls, and in other places schools were burnt or shut down," he added.
The Minister of Education Farooq Wardak said, however, that he does not believe it is the Taliban who is attacking schools.
"Whether they burned the schools or not, it will be blamed in their [Taliban] name. They should stop those who are doing this," he said.
According to statistics from the Persian year 1391 (22 March 2012 to 21 March 2013), more than 3 million children were stopped from going to school because of the violence and there are still more than 450 schools closed in nine provinces of Afghanistan.
Mostly insurgents have been blamed for the issue.
More than 1.5 million new students are expected to start school in Afghanistan this new Persian year 1392, bringing the total number of the country's students to 10.5 million.
Doubts Over Bagram Handover Ahead of Deadline
TOLOnews.com By Saleha Sadat Saturday, 23 March 2013
The head of Afghanistan's parliamentary defence committee on Saturday said that he does not believe the US will transfer all control of Bagram prison and its detainees to the Afghan government.
With two days until the transfer deadline, after President Hamid Karzai granted an extra week to the US last Monday, lawmaker Humayun Humayun said he does not believe the additional time will deliver all Karzai's demands.
"I think that US will not surrender the dangerous prisoners to Afghanistan because the US fears that Afghanistan will release them, so the US will keep those prisoners," Humayun told TOLOnews.
After last year's official handover in September of about 3000 prisoners, the US military is understood to have retained control of around 600 prisoners it deemed dangerous.
More than six months have passed without the Kabul and Washington coming to an agreement on the matter.
However, the presidential office was more positive saying that Karzai's meetings with the top US Commander in Afghanistan Gen Joseph Dunford were fruitful.
"In the meeting, the US side stressed its commitment to handing over Bagram prison to the Afghan Government and all the legal and technical problems have been addressed so the transition will happen soon," the presidential deputy spokesman Mohammad Fayiq Wahidi told TOLOnews in a phone interview.
Afghan military analyst Noor ul Haq Olomi said Karzai's insistence on the innocence of some of Bagram's prisoners impacted negotiations with the Americans.
"The Afghan government's contradictory position has negatively affected the [US] surrender of the prisoners [to Afghan control]," he told TOLOnews. "The president repeatedly said that these prisoners are innocent and will be released, so the US is concerned about this point."
It is said that the roughly 3000 prisoners handed over in September have links to the Taliban and Al Qaida. However a further 600 prisoners including 50 foreigners remain under US guard.
Saffron Exports Almost Doubled Last Year: Officials
TOLOnews.com By Shahla Murtazaie Saturday, 23 March 2013
Saffron exports ballooned to more than 2.8 tonnes in the past year – a 95 percent increase on the previous corresponding period, government officials said Saturday.
Persian year 1391 (22 March 2011- 21 March 2012) saw an improvement in the product packaging and better marketing, which were key towards almost doubling the export of the spice, according to the Export Promotion Agency of Afghanistan (EPAA).
"There has been an increase in 1391 compared to that of 1390, for packing, process, and the marketing carried out," said Sayed Azim Mustafa Hashimi, head of the EPAA's Raisins, Fruits, and Vegetables department.
Afghanistan's saffron is mainly exported to Italy, Australia, Canada, and China, the department officials said.
The product secured first place for its quality from among 16 other countries last year in a saffron fair in France.
Parliament to Re-Summon 11 Ministers Over 2011 Budget
TOLOnews.com Saturday, 23 March 2013
Afghanistan's Parliament will again summon 11 government ministers whose ministries did not spend more than 50 percent of their development budgets in 2011, the Speaker of the Lower House said Saturday.
The 11 ministers of interior, defence, economy, commerce, water and energy, education, urban development, mining, higher education, anti-narcotics, and information and culture were initially summoned late last year to answer for their ministries' budget spending from March 2011-March 2012 (Persian year 1390).
The debate among lawmakers over whether to dismiss the 11 ministers began in December but was never resolved. It restarted on Saturday with some lawmakers saying the parliament needed to follow through with its decisions or risk losing the faith of the people.
House speaker Abdul Raouf Ibrahimi said Saturday the 11 ministers to will be summoned again and decisive action will be taken soon.
"The people are waiting to see how the Parliament will take action about the 11 ministers," said lawmaker Said Fatema Aziz.
"[The summons] was supposed to be done last year, but because of the budget talks, the house did not take action over the ministers," said lawmaker Sayed Hussian Anwari.
The 11 ministers were summoned to appear before parliament last year to justify why their respective ministries did not spend more than 50 percent of their development budgets. However, only seven of the 11 showed up and so no decision was taken by parliament.
The four ministers – including the defence, higher education and urban development ministers – did not turn up at the summons because they were not ministers during the time of the budget spending in question.
Parliament then became divided over whether the four should be summoned at all.
Some lawmakers continue to press for the four ministers appointed after 2011 to appear before parliament because they say the ministers still need to explain their ministries' management of the funds. However, others say only the seven who were in charge at the time of the spending should be held accountable.
The ministers of mines, education and the interior all dispute the charge that they spent "less than 50 percent", claiming they did spend more than 50 percent of the development funds in 2011.
www.afghanistannewscenter.com