Afghanistan and China break ground on long-delayed multibillion-dollar project

Practical work on the Mes Aynak Copper, the long-delayed multibillion-dollar project, has officially kicked off in Afghanistan, generating hope to improve the fragile economy of the war-torn country.

Taliban officials and the Chinese engineers have started work on the world’s second largest copper mine after 16 years of delay due to war and political instability.

High-ranking Taliban officials, the Chinese ambassador in Kabul, and the Chairman and technical team of the contracting company participated in the groundbreaking ceremony at Mes Aynak site in Logar province, some 40 kilometers southeast of Kabul, the capital city.

Mes Aynak is considered the second largest copper mine in the world with estimated reserves of 17 million metric tons, including 11.3 million metric tons of confirmed copper.

Mes Aynak project could generate tens of thousands of job opportunities

Beyond copper, Mes Aynak holds 7,700 metric tons of silver, 6 million metric tons of cobalt, and a limited amount of gold. With this, the government of Afghanistan could provide substantial employment opportunities in a country where its youth are traveling abroad for work.

The mine itself is estimated to create tens of thousands of direct jobs, including miners, engineers, technicians, and support staff and the plus point is that Afghanistan is full of this capacity in all areas.

Taliban security personnel surround an excavator at work during an inauguration ceremony of the Mes Aynak copper-mining project on July 24.

Former Afghan government had signed the 3$ billion agreement with Chinese state-owned China Metallurgical Group Corporation (MCC), but the work has never been moved forward due to the ongoing political instability and war.

Nevertheless, work resumed on the project after the Taliban took over power in 2021 aimed at the withdrawal of foreign troops and the collapse of the republic system.

Trade relations between Kabul and Beijing are expanding

To improve the country’s fragile economy, the Taliban apparently eager to exploit the country’s vast and lucrative mineral deposits to run the country’s affairs and improve the breakable economy.

“We need to accelerate work on the project,” said Deputy Prime Minister for Economic Affairs, Abdul Ghani Baradar. At the ribbon-cutting event, Baradar termed Mes Aynak an important project for Afghanistan, and emphasized that time wasted in the implementation of the project should be recuperated with speedy work.

Moreover, Acting Minister of Mines and Petroleum, Hedayatullah Badri said that MCC burdens a  huge obligation to carry out the work in the most efficient way based on terms mentioned in the contract.

Economic relations between Afghanistan and China are expanding, said Chinese ambassador to Kabul, Zhao Xing. Speaking in the inauguration ceremony, he said that Afghanistan and China engaged in trade worth one billion dollars last year. He further expressed his country’s readiness to work for Afghanistan’s peace, stability and progress in coordination with the UN and other countries.

Meanwhile, China Vice Minister of Culture and Tourism Li Qun said that Mes Aynak Copper area has a historical background and holds special value in tourism, handicrafts, cultural development, and the Silk Road.

“I appreciate the Afghan government for protecting historical monuments and striving to preserve the artifacts of Mes Aynak at the governmental and global levels. I believe that cultural cooperation between Afghanistan and China can enhance global culture and strengthen relations between the two countries,” a local news agency quoted Li as saying.

Mes Aynak plays an important role in improving Afghanistan’s economy

The Taliban has anticipated an annual revenue of 300 to 400 million US dollars, giving dependency on the international copper prices. Afghanistan could be a major copper exporter and many countries would show interest in them because copper is vital for electronics components and is surging in value due to its use in growing markets in terms of electric vehicles, renewable energy and other aspects.

On the other side, the Taliban would collect substantial tax revenue from the mine’s operations, which is indeed helpful to improve public finance. Afghanistan could also increase its revenue stream through extraction of copper and could use it for the public interest.

The button line is that this project (Me Aynak) also unleashes more business opportunities, and could lead to the development of roads, railways, power infrastructure, and other essential infrastructure. This project not only further improves trade ties with China, but also leads Afghanistan to open its business market with other regional countries and also improves economic activity in nearby communities, creating opportunities for local business and entrepreneurs as well.