Chinese companies show interests and takes steps for the natural resources projects in Afghanistan. Representatives of these companies visited the country and are conducting on-site inspections of potential lithium projects, while others have made contacts about such projects.
According to Global Times’ News, attempts of the Chinese companies mark a initial step in potential cooperation on one of the important minerals for both Afghanistan and global economy. However, even interest of the companies grows over time, major hurdles and risks remains. Chinese companies come up against the major uncertainties in the country in terms of policy, security, the economy and infrastructure to realize these projects.
After coordination between the China Arab Economic and Trade Promotion Committee in Kabul and Afghanistan’s mining ministry, representatives of five Chinese companies obtained special visas and arrived in Afghanistan early in November to conduct on-site inspections in Afghanistan.
Yu Minghui, director the China Arab Economic and Trade Promotion Committee stated that: “They have arrived in the Chinatown and are conducting inspections in Afghanistan as planned,” Yu said, adding that he believes these company representatives received the first batch of special visas issued to Chinese investors. With the power transition in Afghanistan, such arrangements are hard to make, and they required coordination among various companies and authorities.”
Noting that the companies were most concerned about basic guarantees of security and social order in Afghanistan, Yu Minghui said:“Some believe friendly relations between China and Afghanistan are conducive to Chinese companies’ operations.”
During meetings and official statements, Taliban and Chinese officials share a mutual positive attitude. In this positive environment, interest in Afghanistan’s natural resources estimated to be worth as much as $1 trillion. Chinese companies are interested with the various commodities including projects involving copper and lithium. In terms of lithium, a critical but scarce resource for batteries and other technologies, Afghanistan could rival Bolivia, which currently has the world’s biggest known reserves, according to the CNN.
In addition to the the Chinese companies who are conducting on site investigation in Afghanistan, at least 20 Chinese state-owned and private companies have also made inquiries about lithium projects. However, Considering major hurdles and risks, it is estimated that many companies will likely adopt a wait-and-see attitude until conditions improve.
