The Kabul Tribune (KT) — Afghanistan is effectively giving away its vast mineral wealth through short-term extraction deals that prioritize immediate revenue over long-term economic development, according to a new report by the Lowy Institute.
The Sydney-based think tank warned that Afghanistan is
exporting raw minerals at the lowest end of the value chain while countries
such as China dominate processing, pricing and strategic control.
The report, titled Afghanistan Is Surrendering Its Mineral
Wealth – And Its Future, said the country is losing control over resources that
could otherwise support long-term stability and prosperity.
It found that under Taliban rule, hundreds of mining
contracts have been issued with limited transparency and oversight, focusing
mainly on quick financial returns. Foreign companies — largely from China, but
also from Iran, Pakistan and Turkey — are extracting raw materials and
exporting them without significant local processing.
As a result, Afghanistan retains minimal economic benefit
while bearing environmental and structural costs, the report said.
The think tank stressed that Afghanistan holds some of the
world’s most valuable critical minerals, including lithium, rare earth
elements, copper and cobalt — key components used in batteries, renewable
energy systems, semiconductors and modern weapons.
However, instead of leveraging these resources strategically,
Afghanistan is treating them as low-value commodities, exporting them in raw
form and forfeiting opportunities to build domestic industry.
Geological surveys conducted by the United States and
Afghanistan’s Ministry of Mines have identified nearly 90 mineral occurrences,
including more than 30 classified as critical. The report noted that in other
countries, such reserves would place them at the center of the global resource
economy.
The analysis warned that Afghanistan’s current approach
reflects a broader pattern of weak governance and short-term decision-making,
where contracts are often negotiated without strategic planning or national
benefit in mind.
It added that China has spent decades building global
dominance in mineral processing and refining, allowing it to control much of
the global supply chain. Afghanistan’s current policies, the report said, risk
reinforcing that dominance.
The report cited examples including the stalled Aynak copper
project, continued export of zinc and lead as raw ore, and the reallocation of
lithium-rich sites under less strategic classifications.
It concluded that Afghanistan is losing not only economic
value but also strategic leverage — the ability to influence markets, negotiate
partnerships and develop its own industries.
“Afghanistan’s mineral wealth is being converted into
dependency,” the report said, warning that without a clear strategy, the
country risks long-term economic marginalization rather than development.
