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President Biden’s hasty exit Afghanistan and of the Taliban‘s rapid takeover has left the US in a difficult spot to access the country’s rare earth minerals. Chinese positioned itself to make money.
Biden’s economic and climate agenda relies heavily on rare earth minerals to transform power and transportation markets and rebuild the nation’s semiconductor industry.
NS of the Talibantoppling over Afghanistan The government has given Islamist militants control of huge mineral deposits critical to batteries for electric cars, cell phones and other high-tech consumer goods.
“We’re going to fight for leftovers because we sit down and discuss and think about what to do,” he said. Chris J. DolanProfessor of politics and global studies at Lebanon Valley College. “The US has all these conditions and warnings, but the Chinese don’t care. of the Taliban “The United States respects human rights,” he said.
he she said Afghanistan For the Chinese, that would be a disaster, if only for one thing.
“It will hurt us because the next generation – especially in terms of advanced computers and technology – will have to be much more dependent. Chinese. “This would be the biggest disaster,” he said. fill up said.
A 2010 Department of Defense report priced AfghanistanRoughly $1 trillion in untapped mineral wealth, which includes copper, iron, gold, and lithium. one in 2019 Afghanistan government official estimated the value at $3 trillion.
But as U.S. citizens race to evacuate and debate whether he wants to get to know the country. of the Taliban State, Chinese started negotiations with of the Taliban to gain access to ore mines.
Chinesesharing a border with Afghanistantook advantage of the opportunity to invest in the mining sector of its neighbor. Beijing It steps into Kabul by promising two things the US cannot do: economic investment and political neutrality.
Meanwhile, the US is worried of the Taliban it will re-impose its theocracy, turn back the clock on women’s rights and other freedoms.
Beijing‘s bold bids come as the US struggles to deter itself ChineseSupply of rare earth minerals. Chinese It exports more than 85% of the world’s rare earth minerals and is home to about two-thirds of the global supply, according to the Center for Strategic and International Studies.
At the same time, competition Chinese Not an easy option for mining rights in Afghanistan. Biden administration does not want to give award of the Taliban with US investment, given the militant group’s ties to terrorists, its appalling human rights record, and its history of subjugating women.
in response of the Taliban takeover, US frozen Afghanistan assets and encouraged global financial institutions to cease aid to the besieged country. It also placed the group on the Treasury Department’s Specially Designated Global Terrorists list, although it did not designate the group as a Foreign Terrorist Organization.
Until the 1980s, the United States was the dominant supplier of rare metals, but pressure from environmental groups and cheaper production overseas changed the landscape.
The Thacker Pass mine in northwest Nevada is said to have one of the largest lithium deposits in the world. Protests by environmentalists and local rights activists halted mining plans.
Chinese It has shown that it is not afraid to use its dominance in the mining sector as a stick to achieve its foreign policy goals.
After Japan arrested a Chinese fishing trawler captain last year, Beijing banned the export of minerals used in the construction of hybrid cars and wind turbines to the country.
in February, Chinese He said he was considering limiting exports of 17 rare-earth minerals used in the manufacture of American F-35 warplanes.
“Chinese Scott Montgomery, a geopolitical scholar at the University of Washington, is willing to use mineral sovereignty as a foreign policy tool. “The world is currently seeking new mineral deposits, but at the same time, Chinese trying to maintain its dominance. It will only intensify.”
Trusting Chinese For rare earth metals, it’s particularly sad, as energy experts predict rare mineral shortages.
A report by the International Energy Agency in May concluded that demand for rare minerals, including lithium and cobalt, could rise rapidly by 2040 as nations seek to boost their green energy initiatives.
The report found that an electric car uses six times more mineral resources than a gas-powered vehicle, and an offshore wind farm requires nine times more mineral resources than a gas-fired power plant.
Lithium, nickel and cobalt are essential for the rechargeable batteries used to power these devices.
Earlier this year, copper prices hit their highest level in a decade, and as of July they were up 21% year-on-year.
“We have seen economic increases in copper. “We’ve seen black markets for copper, and we’ve seen people steal copper from buildings because of famine,” he said.
Known total copper deposits in Turkey Afghanistan a total of about 57.5 million mt, which would be worth about $516 billion at current prices.
Lithium could be even more plentiful. 2010 Pentagon report dubbed Afghanistan Saudi Arabian Lithium.
The Chinese offer of the Taliban It will become increasingly attractive as the country’s economic crisis worsens. Prices of consumer goods such as oil and flour are rising, pharmacies are without medicine, and ATMs are out of cash.
NS of the Taliban They desperately need private capital to make a deal with Chinese an increasing probability.
But any mining contract will require patience, technical skill and infrastructure investment, according to analysts.
The extraction process takes an average of 16 years between discovery of the bearing and production.
Years of conflict devastated Afghanistanhighways, power plants and railways. Mountain roads can also easily overflow and require substantial capital to support them.
in 2007, Chinese spent $3 billion on copper mining project Afghanistan, but the project failed due to difficulties caused by lack of infrastructure.
This time it might be different. in 2013, Chinese He initiated what is known as the Belt and Road Initiative, a global infrastructure development project. The initiative includes investments in more than 70 countries, including: AfghanistanBuilding roads and infrastructure to support Chinese investment.
This is the centerpiece Beijing‘s foreign policy.
Mr. fill up said Chinese The Belt and Road initiative already exists and its relationship with Pakistan is advantageous. Chinese It didn’t exist in 2007, and it’s not in the US now.
he He added that the US should start thinking about these issues if it wants to become a bigger player in the mining industry.
“I don’t see how we avoid paying more for high-tech products that we’ve come to rely on.” he said. “It will happen no matter what. It just matters who dominates the market, and I prefer the United States.”
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