China Replaces West in Major Investments in Afghanistan

DIDPress: China is seeking to capitalize on Afghanistan’s rich mineral reserves by signing large-scale mining contracts.

Following the withdrawal of foreign forces from Afghanistan in 2021, China quickly moved to fill the investment gap, signing approximately 200 mining contracts with the Afghanistan caretaker government to date. These collaborations are expected to create around 150,000 jobs.

Afghanistan’s mineral reserves, valued by international organizations at approximately one trillion dollars, have remained largely untapped for years due to war and lack of infrastructure.

However, with the Taliban’s return to power and their efforts to finance the government through domestic resources, mining has become a priority.

One significant contract includes a 25-year agreement with the Chinese company CAPEIC to extract oil in Sar-e Pol province, involving an annual investment of $150 million.

Initially, the interim government holds a 20% stake in this project, which could potentially increase to 75%.

Besides China, other countries such as Turkmenistan, India, and Iran are also expanding economic cooperation with Afghanistan.

Iran, with a bilateral trade volume of $3.3 billion and participation in the Ghorian mine in Herat province, is considered a key player in this sector.

If the interim government succeeds in revitalizing the mining sector, it could achieve a feat where Western-backed governments, despite spending two trillion dollars, failed to deliver desired results.