The Mine at Anyak (The Culture and Conflict Review, Volume 1, Number 2, December 2007)

Recently it was announced that a consortium of Chinese mining companies, led by the China Metallurgical Group MCC had won the rights to mine at Anyak in Logar Province, just south of Kabul. This could have large implications for Sino-Afghan and Sino-American relations. As the group is a state-run venture, this must be seen in the context of government policy the question is why, and what will come of it The company beat out a number of international concerns, and as others have noted, its the first time Chinese interests in a nations stability and ours have coincided. The company itself is massive, but its true value is hard to discern. The two other corporations in consortium, Jiangxi Copper the largest copper producer in China and Zijin Mining Group the largest gold miner also bring the necessary gravitas to what could be the largest copper mine in the world with somewhere between 13 and 20 million metric tones of the stuff. The company itself has international holdings valued at only a little over a billion dollars, but it has the resources of the Chinese state behind it, so its financial situation should not be underestimated. MCC seems typical of many Chinese resource extraction companies, investing in countries that most Western nations would shun as amoral or too risky, such as Pakistan, Burma, and Papa New Guinea. Afghanistan, however, faces a unique set of challenges and will certainly not be easy to work in, which is why many were surprised the Chinese offered anything more than two billion for the mining rights there. Still, MCC expects up to 30 billion in copper reserves there, making the initial three billion investment seem like more than a favorable entry charge.