

Currently released so far... 13368 / 251,287
Articles
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
2011/05/18
2011/05/19
2011/05/20
2011/05/21
2011/05/22
2011/05/23
2011/05/24
2011/05/25
2011/05/26
2011/05/27
2011/05/28
2011/05/29
2011/05/30
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Consulate Karachi
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
Consulate Thessaloniki
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
ASEC
AEMR
AMGT
AR
APECO
AU
AORC
AJ
AF
AFIN
AS
AM
AFFAIRS
AA
ADM
ALOW
ACOA
ATRN
AID
AND
APER
ADANA
APEC
ADPM
ADCO
ABLD
AADP
AG
ARF
AMED
AY
AORG
ASEAN
ABUD
AROC
AE
AO
AL
APCS
AGAO
AINF
AODE
ACABQ
AX
AMEX
AZ
ASUP
ARM
AQ
ATFN
AMBASSADOR
ACBAQ
AFSI
AFSN
AC
ASIG
ASEX
AER
AVERY
AGRICULTURE
ASCH
AFU
AMG
ATPDEA
ASECKFRDCVISKIRFPHUMSMIGEG
AORL
AN
AIT
ANET
AGMT
ACS
AGR
AMCHAMS
AECL
AUC
AFGHANISTAN
ACAO
BR
BB
BG
BEXP
BY
BA
BRUSSELS
BU
BD
BK
BL
BH
BM
BTIO
BP
BO
BE
BILAT
BC
BX
BIDEN
BF
BBSR
BT
BMGT
BWC
BN
BTIU
CPAS
CA
CASC
CS
CBW
CIDA
CO
CODEL
CI
CROS
CU
CH
CWC
CMGT
CVIS
CDG
CD
CV
CG
CF
CHIEF
CJAN
CBSA
CE
CY
CM
CONS
CW
CN
CDC
CT
CONDOLEEZZA
CICTE
CYPRUS
COUNTRY
CBE
CIVS
COPUOS
CARSON
CTR
COUNTER
COM
CR
CFED
CKGR
CHR
CVR
CLINTON
COUNTERTERRORISM
CITEL
CLEARANCE
COE
CARICOM
CB
CSW
CIC
CITT
CAFTA
CACM
CDB
CJUS
CTM
CAN
CONSULAR
CLMT
CBC
CIA
CNARC
CIS
CEUDA
CAC
CL
CACS
CAPC
ECON
ETTC
EFIS
ETRD
EC
EMIN
EAGR
EAID
EU
EFIN
EUN
ECIN
EG
EWWT
EINV
ENRG
ELAB
EPET
EN
EAIR
EUMEM
ECPS
ELTN
EIND
EZ
EI
ER
ET
EINT
ECONOMIC
ENIV
EXIM
ES
ECONOMY
ERNG
ELECTIONS
ENERG
EK
EPA
ENGR
ETRC
ENVI
EXTERNAL
ELN
EAIDS
ECA
EFTA
EINVEFIN
EUREM
ETRDEINVECINPGOVCS
EFINECONCS
ECOSOC
ETC
ENVR
EAP
EINN
EXBS
ENGY
ECONOMICS
EIAR
EINDETRD
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
EFIM
EREL
EINVETC
ECONCS
ETRA
ESA
EAIG
EUR
EUC
ERD
ETRN
EINVECONSENVCSJA
EEPET
EUNCH
ESENV
ENNP
ECINECONCS
ETRO
ETRDECONWTOCS
ECUN
GM
GG
GERARD
GT
GA
GR
GTIP
GLOBAL
GV
GH
GL
GOV
GOI
GF
GTMO
GANGS
GCC
GAERC
GE
GZ
GAZA
GY
GUILLERMO
GASPAR
IZ
IN
IAEA
IS
IMO
ILO
IR
IC
IT
ITU
IV
IMF
IBRD
INDO
IWC
IRAQI
ISRAELI
ITALY
ITPGOV
ITALIAN
ICAO
ITRA
IPR
INMARSAT
ID
ICRC
INTERNAL
IIP
IRS
ICTY
IQ
IO
ICJ
ILC
IEFIN
IA
INTERPOL
IEA
INR
INRB
IAHRC
ISRAEL
IZPREL
IRAJ
IF
ITPHUM
IL
IACI
IDA
ISLAMISTS
IGAD
ITF
INRA
INRO
IBET
INTELSAT
IDP
ICTR
IRC
KNNP
KFLO
KDEM
KOMC
KSUM
KIPR
KFLU
KPAO
KE
KCRM
KJUS
KAWC
KZ
KSCA
KDRG
KCOR
KGHG
KPAL
KTIP
KMCA
KCRS
KPKO
KOLY
KRVC
KVPR
KG
KWBG
KMDR
KTER
KSPR
KV
KTFN
KWMN
KFRD
KSTH
KS
KN
KISL
KGIC
KSEP
KFIN
KTEX
KTIA
KUNR
KCMR
KMOC
KCIP
KTDB
KBIO
KU
KSTC
KICC
KIRC
KSEO
KSAF
KR
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KIRF
KOCI
KMPI
KCRCM
KNUC
KIDE
KPAONZ
KHLS
KPRP
KHDP
KNUP
KHIV
KCSY
KTRD
KNAR
KWAC
KJUST
KTBT
KBCT
KNPP
KO
KBTS
KSCI
KACT
KFSC
KENV
KAWK
KHSA
KPRV
KVIR
KCFE
KX
KVRP
KCOM
KAID
KPWR
KTLA
KMFO
KNNPMNUC
KNDP
KMRS
KERG
KPOA
KRCM
KCFC
KNEI
KCHG
KPLS
KREL
KFTFN
KTFM
KLIG
KDEMAF
KRAD
KBTR
KGIT
KGCC
KICA
KHUM
KSEC
KPIN
KESS
KDEV
KPIR
KWWMN
KOM
KWNM
KRFD
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KRGY
KREC
KIFR
KSAC
KWMNCS
KPAK
KOMS
KFPC
KRIM
KDDG
KCGC
KPAI
KID
KMIG
KNSD
KWMM
MARR
MX
MASS
MOPS
MNUC
MCAP
MTCRE
ML
MR
MRCRE
MTRE
MASC
MY
MK
MAS
MO
MTCR
MIL
MAPP
MG
MD
MAR
MZ
MU
MP
MA
MOPPS
MTS
MLS
MILI
MEPN
MEPI
MEETINGS
MERCOSUR
MW
MT
MCC
MIK
MAPS
MV
MILITARY
MARAD
MDC
MEPP
MASSMNUC
MUCN
MEDIA
MI
MQADHAFI
MPOS
MPS
MC
NZ
NATO
NI
NO
NG
NL
NU
NPT
NS
NA
NATIONAL
NSF
NDP
NR
NSSP
NP
NIPP
NGO
NAS
NE
NZUS
NH
NSG
NAFTA
NC
NEW
NRR
NT
NASA
NAR
NK
NOVO
NATOPREL
NSC
NV
NPA
NSFO
NW
NORAD
NPG
OTRA
OECD
OVIP
OREP
OPRC
ODC
OIIP
OPDC
OAS
OSCE
OPIC
OMS
OEXC
OPAD
ODIP
OPCW
OIE
OFDP
OFFICIALS
OHUM
OSCI
OTR
OMIG
OSAC
OBSP
OFDA
OVP
ON
OCII
OES
OCS
OIC
PGOV
PREL
PARM
PINR
PHUM
PM
PREF
PTER
PK
PINS
PBIO
PHSA
PE
PBTS
PL
POL
PAK
POV
POLITICS
POLICY
PPA
PCI
PAS
PALESTINIAN
PROP
PTE
PA
PAIGH
PO
PROG
PJUS
POLITICAL
PMIL
PGOF
PDOV
PSI
PG
PRAM
PREO
PARMS
PAO
PTERE
PRGOV
PORG
PP
PS
PKFK
PSOE
PEPR
PINT
PMAR
PRELP
PREFA
PNG
PFOR
PUNE
PGOVLO
PHUMBA
POLINT
PNAT
PGOVE
PHALANAGE
PARTY
PDEM
PECON
PY
PLN
PHUH
PEDRO
PF
PHUS
PTBS
PU
PARTIES
PCUL
PGGV
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PGIV
PHUMPREL
POGOV
PEL
PINL
PBT
PINF
PRL
PSEPC
POSTS
PAHO
PHUMPGOV
PGOC
PNR
PROV
RS
RP
RU
RW
RFE
RCMP
RIGHTSPOLMIL
ROBERT
RICE
RM
REGION
RO
ROOD
RSP
RF
RELATIONS
RIGHTS
RUPREL
REMON
REACTION
REPORT
RSO
SZ
SENV
SOCI
SNAR
SY
SO
SP
SU
SI
SMIG
SYR
SA
SCUL
SG
SW
SR
SYRIA
SPECIALIST
SEN
SC
SF
SL
SAARC
SNARIZ
SARS
STEINBERG
SCRS
SWE
SN
SAN
ST
SIPDIS
SSA
SPCVIS
SOFA
SENVKGHG
SANC
SHI
SEVN
SHUM
SK
SH
SNARCS
SPCE
SNARN
SIPRS
TRGY
TBIO
TSPA
TU
TPHY
TI
TX
TH
TIP
TSPL
TNGD
TP
TW
TZ
TF
TN
TC
TL
TV
TS
TT
TK
TD
TERRORISM
TO
TRSY
TURKEY
TINT
TFIN
TAGS
TR
TBID
THPY
UNSC
UK
UNGA
UN
US
USTR
UZ
USEU
UV
UG
UP
UNAUS
UNMIK
UY
USPS
UNHRC
USUN
UNESCO
UNCHR
UNHCR
USNC
UNEP
USOAS
USAID
UE
UNVIE
UAE
UNO
UNDP
UNODC
UNCHS
UNFICYP
UNDESCO
UNC
UNPUOS
UNDC
UNICEF
UNCHC
UNCSD
UNFCYP
UNIDROIT
UNCND
Browse by classification
Community resources
courage is contagious
Viewing cable 09KABUL3574, Chinese Firm Again Frontrunner for Major Afghan Mining
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09KABUL3574.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09KABUL3574 | 2009-11-07 12:54 | 2011-05-19 17:00 | CONFIDENTIAL | Embassy Kabul |
Appears in these articles: http://www.aftenposten.no/spesial/wikileaksdokumenter/article3992445.ece |
VZCZCXRO2329
RR RUEHDBU RUEHPW RUEHSL
DE RUEHBUL #3574/01 3111254
ZNY CCCCC ZZH
R 071254Z NOV 09 ZDK
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC 2911
INFO RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHRH/AMEMBASSY RIYADH 4315
C O N F I D E N T I A L SECTION 01 OF 02 KABUL 003574
C O R R E C T E D C O P Y (CHANGES IN PARA 11)
SIPDIS
E.O. 12958: DECL: 11/7/2019
TAGS: EMIN EINV ENRG PREL SENV AF
SUBJECT: Chinese Firm Again Frontrunner for Major Afghan Mining
Contract
REF: KABUL 3101
Classified By: Acting CDDEA Robert F. Cekuta for reasons 1.4 (b) and
(d)
¶1. (C) Summary: China Metallurgical Group (MCC), the Chinese
state-owned firm operating the Aynak copper mine, is a leading bidder
for the multi-billion dollar Hajigak iron ore mine in Bamyan. If MCC
wins the contract, it will have the two largest foreign investments
in Afghanistan as well as be running mines that could be among the
world´s largest. The MCC track record with Aynak, however, does not
suggest the Chinese company will create jobs as quickly as GIRoA
authorities would like. Moreover, the Ministry of Mines´ focus on
Aynak -- and Hajigak -- comes at the expense of attention to smaller
mining operations that could yield more immediate gains in terms of
revenues, jobs, and increased Afghan entrepreneurial activity. The
Hajigak case also underlines again the need for Afghanistan to reform
its mining law, something the IMF and others have long recommended,
including as one of the conditions for HIPC (highly indebted poor
country) debt relief. End summary.
Hajigak: A World-Class Iron Deposit
- - - - - - - - - - - - - - - - - - -
¶2. (SBU) According to U.S. Geological Survey and Soviet-era data,
the Hajigak iron ore deposit in central Afghanistan´s Bamyan province
is the largest in Asia, with an estimated 1.8 billion tons of ore
containing 62 percent iron. Ministry of Mines officials estimate
Hajigak could produce for decades and potentially supply GIRoA with
USD 1 billion in royalties and tax receipts annually, depending on
the terms of the contract. Ministry estimates suggest the mine could
directly employ over two thousand employees once iron mining begins
and indirectly provide jobs to another ten thousand in steel
production, coal mining, and support industries.
¶3. (SBU) The mine´s development is likely to require USD 10 billion
in capital over the next decade, but that figure really depends on
the scope of the final bid, which has yet to be determined. The
Ministry of Mines has linked the Hajigak iron contract to development
of a nearby deposit of coking coal for use in domestic steel
production. The public tender envisions ambitious multiple
operations: a coking coal mine, iron mine, thermal coal mine, power
generation facility, ore processing, and steel manufacturing.
Bids Due in December
- - - - - - - - - - -
¶4. (SBU) Seven companies are shortlisted for the Hajigak contract:
MCC (China), Tuwairqi Steel Mills (Pakistan/Saudi Arabia), and five
Indian firms: Essar Minerals, Ispat Industries, JSW Steel, Rashtriya
Ispat Nigam, and Sesa Goa. Rashtriya Ispat Nigam and MCC are both
state-owned companies. Final bids are due by late December. The
Ministry of Mines will have six weeks to analyze the bids, announce a
preferred and reserve bidder, and then begin contract negotiations.
(Note: The Ministry took five months to negotiate the Aynak copper
contract with MCC. End note.)
Questions on Transparency and Process
¶5. (C) Mining Minister Adel has personally fast-tracked the Hajigak
tender. World Bank officials report the Bank had preferred to see
how the Aynak project progressed before helping the Afghans move
ahead with their country´s second major mining tender. While the
locally-based NGO Integrity Watch International publicly said it is
satisfied with the transparency of the Aynak tender process, its
director told EconOff he wished the Ministry of Mines had waited to
learn more from the Aynak process before proceeding with Hajigak.
¶6. (C) Ministry of Mines and World Bank officials are also concerned
that if MCC wins the Hajigak tender, Afghanistan´s two largest
foreign investments will be awarded to the same state-owned Chinese
firm. Minister Adel acknowledged this concern, but said the tender
process does not allow for any consideration of issues beyond the
bids themselves.
¶7. (C) No U.S., Canadian, or Australian companies submitted
expressions of interest on Hajigak, according to [TEXT REMOVED BY AFTENPOSTEN],
who suggested the tender´s requirement for an associated
steel plant had deterred potential Western bidders.
[TEXT REMOVED BY AFTENPOSTEN] added
the Indian and Pakistani/Saudi company bids do not appear competitive
and that it might be best if none of the bids are accepted and the
Ministry of Mines is forced to re-advertize. If the tender were
advertized without the steel manufacturing component it might attract
the attention of big western mining companies,
[TEXT REMOVED BY AFTENPOSTEN] continued.
While noting he had not seen the final bids,
[TEXT REMOVED BY AFTENPOSTEN] said MCC seems
likely to win the contract.
Ministry of Mines: Eyes on the (BIG) Prize
- - - - - - - - - - - - - - - - - - - - - -
¶8. (C) Huge projects like Aynak and Hajigak have the potential to
bring in billions in revenue, but may not necessarily provide
significant near-term employment opportunities for Afghans. Aynak is
eighteen months behind schedule and Afghan officials worry MCC will
not create the numbers of jobs expected, either at the mine or in
building roads and other needed infrastructure (reftel). As a
result, Provincial Reconstruction Team and Embassy officers have
tried to focus the Ministry of Mines on smaller operations such as
marble and gem mines. Private sector experts repeatedly report
high-quality marble and Afghan gems hold great economic potential,
including for Afghan entrepreneurs, but Ministry of Mines officials
keep concentrating on big projects.
¶9. (C) Connected with this issue is the long-standing push,
including by international donors, to revise the mining law. Mining
law reform is one of the requirements for HIPC approval. Technical
advisors at the Ministry note several flaws in the current mining law
affecting small and medium-sized operations: (1) short contract terms
(sometimes as short as two years) that fail to attract investors, (2)
no set royalty scheme (necessitating bidding on each deposit,
including individual marble quarries), (3) limited legal ways to mine
gemstones, and (4) separate contracts needed to explore and exploit
deposits (i.e., without a pre-negotiated joint contract, an
exploration company does not have the right to develop any deposit it
might discover.) A new draft mining law, not yet made public, is
"more investor friendly", according to Ministry advisors, but still
fails to address the issues listed above.
Comment
- - - -
¶10. (C) Afghanistan´s minerals are a potential source of wealth and
income, with PRT officers reporting extensive local interest in small
mining operations, particularly in the North and East. However, the
Ministry of Mines is ignoring the potential of smaller operations and
is focusing instead on large operations, with their attendant
royalties, taxes, and up-front payments. (For example, MCC´s Aynak
contract included a USD 808 million signing bonus.) Four new
USAID-funded technical advisors (in international investment law,
natural resource economics, petroleum, and mining) will provide the
Ministry with greater expertise and capacity, thus helping the
Ministry develop a broader economic development focus. Many experts
have also said a more reform-minded Minister would also help
Afghanistan realize the full potential of its mining industry.
¶11. (C) As for MCC and its bid for Hajigak, the company´s
employment track record with Aynak (reftel) suggests it might better if
another company were to win the contract. End comment.
EIKENBERRY