With huge quantities of rare-earth elements valuable to high-tech industries like lithium-ion battery production, will Afghanistan become the "Saudi Arabia" of the future?

Kabul A CH-47 Chinook helicopter flies over Kabul, Afghanistan, June 4, 2007 DoD photo by Cherie A. Thurlby

Right now, every mining company CEO in the world has one thing on the mind: Afghanistan.

Yesterday, the Pentagon announced that American geologists have discovered an estimated $1 trillion worth of untapped geological resources there, including vast reserves of rare earth metals and lithium, which are becoming increasingly sought-after for high-tech manufacturing. The cache is large enough to have profound geopolitical implications. But judging by the state of play at another remote, developing-world mineral stash—the lithium deposits of Bolivia’s Salar de Uyuni, which I recently visited—it’s not easy to go from desolation to natural-resource riches. Updated.

It's truly a bonanza: Those rare earth metals essential for building motors for hybrid and electric cars that China thought they had cornered? Afghanistan may be sitting on $7.4 billion worth. That’s not counting niobium, another rare and essential metal--the war-torn, deeply impoverished country may have $81.2 billion of the stuff. As for lithium, the essential battery-building mineral that has led so many to suggest that lithium-rich Bolivia may be the center of the world in an age of electric cars—there’s a chance that Afghanistan may have even more. (We have yet to find much detail about what kind of lithium resources we’re looking at—the geologists we’ve contacted haven’t yet responded—but according to the New York Times, an internal Pentagon document said that Afghanistan could become the “Saudi Arabia of Lithium,” a nickname that’s also been applied to Bolivia and Chile in the past couple of years.) Then there’s the big money, the meat-and-potatoes. $420.9 billion worth of iron. $274 billion in copper. $50.8 billion in cobalt.

According to the New York Times, the Afghan treasure hunt began in 2004, when American geologists working on the reconstruction effort found geological charts that the Soviets had assembled in the 1980s, when they occupied the country. Soon they began conducting flyover surveys of 70 percent of the country, using “advanced gravity and measuring equipment” to collect preliminary data. In 2007 they conducted even more detailed aerial measurements, and the numbers were “astonishing.” In October 2007 the USGS published a preliminary assessment of the country’s mineral resources that claimed there were “abundant” resources present. Two and a half years later, those preliminary measures became today’s bombshell news. “There is stunning potential here,” Gen. David H. Petraeus , commander of the United States Central Command, told the Times. “There are a lot of ifs, of course, but I think potentially it is hugely significant.“

Afghanistan is a massive, geologically diverse country whose soil has historically been used for little other than growing opium poppies, so it shouldn’t be too surprising that it is home to vast mineral riches. But the numbers in this recent report are still pretty astounding*. One trillion dollars is the kind of number that people use when they pitch blue-sky themes for mining asteroids, or the dark side of the moon, and the new Pentagon report claims that the total estimated reserves could be worth close to that, $908 billion. Afghanistan’s current GDP, by contrast, is $12 billion. This is enough to make Afghanistan one of the world's most important mining centers.

Yet these resources probably won’t to be easy to get out of the ground. It’s not a perfect analogy, but Bolivia, home to what until yesterday was widely acknowledged as the world’s largest stash of lithium, offers some perspective. The Bolivian government has had tremendous difficulty getting its lithium-mining initiative up and running. The country has decided to go it alone, to develop the massive lithium deposits of the Salar de Uyuni without the involvement of multinational mining companies. But because of the Bolivian government’s lack of experience with lithium mining, and because of the remoteness of the resource and the lack of infrastructure in the area, the project is now seriously behind schedule. Even the scope of the project is miniscule compared to the massive lithium operations of companies like SQM and Chemetall just across the border in Chile. Bolivia, keep in mind, has a centuries-long history as a minerals producer. (Much of that production was done in an incredibly exploitative manner, but that’s another discussion.)

On the other hand, Afghanistan has “no mining culture,” a USGS geologist told the Times. Afghanistan will almost certainly use multinational mining companies, who have the expertise and the money to get it done, to tap their mineral resources, but Afghanistan is also a war zone, and now, a staggeringly valuable prize for the victor. This is a story we’ll be watching closely, and updating as we hear back from geologists who are familiar with the terrain.

* UPDATE: After talking to Jack Medlin, an Afghanistan expert at the USGS, a clarification is in order. There actually is no single “recent report” that triggered the Times story. This report from 2007 is the USGS’s most recent official statement on the matter, and Medlin says that the next phase of the report probably won’t be completed until late 2011. He also points out that in 2007, the USGS released a brief report on Afghanistan’s mineral reserves and held a press conference to generate interest, but that it was nothing more than a “one-day news cycle.” So what occasioned this Times piece, which the blogosphere is absolutely devouring? Medlin doesn’t claim to know. “We’ve know about [Afghani mineral deposits] for a couple of years,” he said. However, “We’re glad” about the huge audience this latest story is receiving, he told me, “because it should focus interest from international investors.” We’ll stay out of the politics and stick to the scientific and technological issues involved, but if you want to read the political theories, Andrew Sullivan has a good compendium here.

Still, there is news in the Times story, most notably the bit about Afghanistan containing vast reserves of lithium. The 2007 report mentions lithium only briefly: “Pegmatite fields, principally in northeastern Afghanistan, contain a variety of commodities, such as lithium, beryllium, quartz, feldspars, mica, gemstones, tantalum, niobium, and cesium. Exploitation of these pegmatite deposits could support local glass, chemical, or artisanal industries.” That’s very different than talking about dry salt lakes where, according to the Times story, preliminary research conducted “just this month” indicated “the potential for lithium deposits as large as those of Bolivia ... .” Medlin confirmed to me that the USGS has found lithium in the brines of dry salt lakes—the same sweet, relatively easy-to-extract source material found in Bolivia and Chile—but wouldn’t say more about lithium.

We’re waiting to get video of a press conference that the Department of Defense just held on this matter, but the public affairs office says they’re having technical problems. More soon.

[NYTimes]

24 Comments

Have they finally found the Unobtainium?!
- wise up

The Taliban are shooting local officials and 7-yr old kids connected to officials over SAND and Ideological principles....What do we think they will do to control the region containing Billions of dollars worth of minerals?

The free-world had better come correct to the Afghan sandbox to let the religious extremists of the Taliban know that amateur hour is over for good....miles of razor-wire, auto-sensors with full-auto gun turrets, attack helicopters within 5 minutes of ground zero, etc.

Sadly, I simply see the vast wealth discovered doing nothing more than allowing Karzai's Krooked Konundrum of a gov't to continue its back-room, corrupt practices.

The Taliban will be 'bought-out' - money paid to NOT attack the civilian companies mining the area....any guesses where THOSE $$$ to the Taliban will go? (Hint: Weapons) Bet we see all of that money again in 20-years in some new and inventively disruptive way....

And I was wondering why we were still fighting the war in the middle east. What could keep soldiers in a foriegn contry that has been bombed back to the stone age? OH!!! A TRILLION DOLLARS!!!

Tinfoil Hats are now on!

a thought occured to me, one i'm not enirely sure how i feel about myself. Americans have bled over afghanastan for almost ten years. it seems obvious to me that we cannot allow the Taliban have these resources. Americans discovered the minerals, what if we mined them? not sure on the geography of it, but what if we simply annexed the deposits, gave the legitimate (sorta) afghan government a small slice of the pie and kept the lions share for ourselves?

Abremms, the article also says that Afghanis have virtually zero experience with mining. So basically we are going to come in there and do the mining, which most of the resources will go to us at that point because in reality, who then would have control over the lithium and other reserves? We would.

@ Setarip

If Afghanistan doesn't want to end up like Bolivia then they will definitely bring someone else in to do the heavy lifting. The question is whether they will bring in American companies from the nation that has spent billons of dollars trying to keep them and the rest of the world safe or Chinese companies that want to achieve whatever monopoly they can on rare minerals and are willing to pay top dollar to do it. It all depends on how much money the Chinese are willing to throw at this and to what level the US is willing to use its established clout.

Thats a good point. This will be very interesting to see unfold, hopefully the Chinese do not get control over it.

This a very good find! In a time when china is saying they are going to stop selling rare minerals to us. The fact is as we are in control of the ground operations in Afghanistan there is no way we would let china get a hold of this. This could go really good or really bad! The afghan government could take this opportunity to build in to a civilized country. Build the infrastructure needed! Or they can remain corrupt; a few will take the wealth, build themselves a nice palace and call it a day. I guess its test time, what type of democracy have we built here in Afghanistan?
What about the rare minerals in the USA that we aren’t allowed to mine?

Does any one else find it ironic that we are in the middle east fighting oil wars. We must have oil to keep the cars going. Now we are starting to build electric cars (and motorcycles which I will buy). In an effort to better control areas which impact oil supply (not that Afghanistan has oil, bit it is smack in the middle of the middle east and threatens nearby oil rich areas) we find what is essentially the next fuel source America and the west will be turning too. I have a feeling we are going to be engaged in Afghanistan a very very long time. Remember Obama increased troops a while ago. Reports of these minerals has been pouring in well before Bush even left office.

um... yeah. I don't think we are going to let China within a satellites spy imagine of Afghanistan. We have a trillion troops over there and that will probably triple to a zillion troops to protect to new mining operations that will no doubt begin soon with western companies backing all of them. Didn't you guys see Avatar?!?! Nothing will stop us greedy westerners from taking what we want.

Well at least all the shiney new armoured back hoes and shovel loaders will come in handy. Pity JCB dident get the contract.

"The free-world had better come correct to the Afghan sandbox to let the religious extremists of the Taliban know that amateur hour is over for good....miles of razor-wire, auto-sensors with full-auto gun turrets, attack helicopters within 5 minutes of ground zero, etc."

"Thats a good point. This will be very interesting to see unfold, hopefully the Chinese do not get control over it."

"I don't think we are going to let China within a satellites spy imagine of Afghanistan."

I expected this sort of near-sightedness when I read the article on MSN.com. But here? We claim to be the well educated but we fail to see that the west isn't always right. Sure, China tries to buy much of the world's raw minerals, but as yourselves why? ....because the west demands cheap goods from China. If we weren't so selfish and greedy, China wouldn't be nearly as 'manufacturingly selfish' and the Taliban wouldn't have a reason to kill us (they still wouldn't like us, but I assume they would live and let live).
Remember, just because the USA has a big military doesn't make their ideology that much better.

I think China will fund America's mining operation in the Middle East then reap the intrest. Just as China has always done.

Oh great! The americans are ending one addiction with another addiction.

so American...

after seeing all your comments ,i am starting to wonder about all those conspiracy theory videos about America acting like helping and looting other country's...

shame on you guys,instead of getting happy that finally Afghans have a chance to drop there guns and get some jobs...

you are talking about looting them,
when i saw this news i though ok americans are trying to help these poor guys,but now i am sure, profit is the name of the game,no wonder they are trying to blow up u r trade centers.

and ya in case u r wondering am i a jihadi or talibani,
i am an INDIAN.

i actually am very worried about this. First we are relying upon countries like this for oil, then if and when we ever switch to electric cars, etc. and we require more lithium, guess where we will have to go for the materials... the same place!!! .........

To hell with lithium batteries and the like. Use super capacitors that use tantalum.

When was Afghanistan part of the United States. I love how alot of commenter think that the US has the right to mine these rare mineral. What does the Afghanistan citizen and government have to say about it?

We have no legel calm over the these mineral. We are in Afghanistan because of war on "terrorism", we are not there to conquer their land and take over their resources.

I am extremely disgusted by my people and the comments I have read about this article. We are America, We are a country who believes in freedom and rights to life liberty and pursuit of happiness... that doesnt end at our borders. No we shouldnt be raping the afghans for the resources they are sitting on. But since we have thrown them into turmoil, we now have an obligation and a responsibility to protect and help maintain the stability of their government. we have to give the government who will be over the resources, a chance to establish a stable control and governing system over their people. And help to facilitate the harvest said resources and provide their people with the same possibilities that we as a nation have.

There is a tremendous amount of speculation here regarding how mineral rights will be handled. It seems many assume that because Western mining companies may mine the minerals, only the West will benefit. Nothing has even happened, and yet many of you have already expressed your doubts over how such new wealth will be distributed.

When one considers that Western oil companies have performed most of the oil extraction in Saudi Arabia, and couple with this the fact that Saudi Arabia is presently financing a considerable portion of America's debt, it should be obvious where the majority of the mineral wealth in that country has gone. It's gone to the leadership of that country, for better or worse.

I will remind readers here that the US, as part of a NATO effort, entered Afghanistan for what very few dispute as valid reasons. The US has spent billions, far more that all other participants combined, in prosecuting a war against barbaric terrorists who routinely and purposely kill women and children in the name of their ideology.

The real story here will be how our current administration handles this windfall for the Afghan people and the world. Does the US administration have the will to stand up to Karzai and promote a free and transparent government? I'm not sold on this, as this administration hardly seems transparent itself. But if there is a benefit to be gained for the Afghans and those countries which have participated in pursuing their freedom by extracting these minerals, then it seems obvious that it should and will be pursued.

TAKE IT ALL!!!

I mean come on! All you guys saying that we should observe our boundries and all that crap!!!

I mean... it's not like Afganistan has radicle Islomic terrorists around or... wait... wut... we were attacked by radicle Islomic terrorists?

Good job on thinking this through you "finders keepers" types.

This is a very scary situation, but I am glad that we (the US) already happen to have a presence in Afghanistan, because if we did not, who knows who would have pounced on the resources there once they were discovered-- the Arabs? China? Iran? North Korea? Whoever ended up in control-- (and as it is now, it looks like we will be}-- would likely end up in a protracted battle to maintain control of the area.

The US is the only country currently strong enough to maintain control without major guaranteed battles, but even then, we can still expect smaller battles with religious, national and political zealots. Regardless of what happens, Afghanistan (as well as Bolivia, perhaps) is not strong enough to protect those resources by itself, and hopefully cooler and saner heads will prevail and deal with the government there to not only give their country a fair recompense for their minerals, but to help them establish their own stable military as well as schools, health care systems, and roads and bridges. The UN or some other international body must preside to assure fairness. Once their mines are exhausted-- however long that takes-- they'll be on their feet and not groveling for assistance of any kind from outsiders.

Unlike oil, which is its own poison and disappears shortly after it is taken from the ground, if we as a human species are capable of planning for such a day, as lithium and rare earth minerals are depleted, they can be recycled to keep our vehicles, computers, electric motors and other systems working. Once lithium batteries, motors with neodymium magnets, computer systems with precious metals, and other hardware has outlived its usefulness, we need to be prepared to recycle all of it far more effectively than is done today.

It would be naive to think that we would be doing Afghanistan, Bolivia or any other small country a favor by just backing off and hoping that every other country would do the same; greed and the desire for power is going to creep in from somewhere, just as China had planned to shut off its supplies of rare earth minerals when they thought they had the market cornered. I can imagine China would try to overtake that supply as well if it could-- and if not, then possibly Iran, the Saudis, or other OPEC countries desperate to replace the inevitable loss of oil profits. Any deal to mine those natural resources must have international participation so that paranoia cannot trigger continuing conflict.

Do u guys seriously think that they JUST found the cache?
I bet they knew about it years ago b4 the invasion... in fact... this may be the main reason for the invasion...



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