Some statements made recently by the Taliban officials including acting minister of mines, Shahabuddin Delawar suggest that a decision could be reached soon to award the mining rights for lithium to the foreign bidders.
The negotiations have been continuing with several foreign companies.
The Gochin China Company has offered to invest USD 10 billion in the lithium mining project.
There is no reliable data on the extent of lithium or any other mineral deposits in Afghanistan. However, there have been unconfirmed reports that the estimated value of the minerals in Afghanistan could be in excess of USD 3 trillion.
On the other hand, Ashiqullah Hamkar, an engineer employed at the Ministry of Mines and Petroleum, told the Spanish news service EFE Agencia that the survey conducted by the previous government showed that the discovered mines of lithium in Afghanistan are worth more than $3 trillion. — It is not clear whether there was a mix up in his statement or Hamkar actually mentioned the value of the lithium deposits alone to be three trillion dollars.
Other experts put the approximate value of lithium deposits in Afghanistan to about one trillion dollars.
EFE reported that the Taliban government has claimed that the processing of the lithium deposits would be done within the country, and the Chinese investment would result in over 120,000 direct and a million indirect jobs as it would also involve other infrastructure projects.
Lithium, an important component in new-age batteries, is mostly used in manufacturing of mobile phones, vehicles, computers and drones, among other devices, and the demand for the mineral is expected to surge in the next few years.
Some experts believe that the quality of lithium deposits in Afghanistan is better than other deposits in the world.
Most of Afghanistan’s lithium reserves are located in the eastern provinces of Nuristan and Kunar (near the border with Pakistan) and southwestern Helmand (near the border with Iran and Pakistan).
Smaller deposits are detected in other parts of Afghanistan.
According to US Geological Survey, Afghanistan “could be considered as the world’s recognized future principal source of lithium.” An internal Pentagon memo said Afghanistan could become the “Saudi Arabia of lithium.”
According to International Energy Agency, the demand for Lithium in 2040 could rise 40-fold from 2020 levels.
The Australian Financial Review estimates that the global lithium demand will reach 989,000 tons of lithium carbon equivalent in 2023
The current price of lithium is about USD 40 per kg. /// nCa, 29 July 2023
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