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Taliban’s troubles are canaries in the mines for Chinese investors

  • Afghanistan’s mineral resources attract China’s state and private firms, but instability and logistical barriers also await
  • Existing security and infrastructure issues compounded by interim Afghan government’s in-tray and the threat of sanctions

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The closed Mes Aynak copper mine offers a reminder of the difficulties that come with investing in Afghanistan. Photo: Reuters
Rachel Zhangin Shanghai
Investing in mining projects in Afghanistan now entails weighing up security risks, poor infrastructure and potential sanctions against the Taliban.
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Despite the lure of the country’s considerable mineral reserves, the threats and obstacles may cool Chinese entities’ enthusiasm for involvement, observers and traders said.

“The possibility of China investing in Afghan minerals is very low in the short term, although in the long run, if Afghanistan achieves stability and the international community eases sanctions, the possibility may increase,” said Zhu Yongbiao, a professor of international relations at Lanzhou University.

A high-profile Chinese investment project in Mes Aynak has already been in limbo for 14 years. State-owned Metallurgical Group in 2007 won the bid to operate the largest Afghan copper mine project, which has reportedly yet to begin because of security issues and the need to remove landmines.

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Business in Kabul slowed by Taliban takeover

Business in Kabul slowed by Taliban takeover

Having last month seized power following the US’ decision to withdraw troops after a 20-year presence, the Taliban has announced an interim government filled with hardline Taliban personnel. China has since urged the new government to be inclusive.

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