Afghanistan sits on $3 Trillion of precious minerals.

[Clutch]

 

[Asian.Century]

Pakistan must help Afghanistan otherwise China will take all of it too.

 

[BHAN85]

If you spend more money extracting something than the worth of that something, you have materials which worth is exactly zero.

 

[hussain0216]

Do all of these minerals stop at the border?????


The same is aid about Balochistan and much of Pakistan especially our western half

 

[Pakistansdefender]

Pakistan must help Afghanistan otherwise China will take all of it too.

The ink way it should be that after extraction from Afghanistan they should be processed in pakistan as pak has labour, excess to ports and China.
And expertise etc

 

[Aesterix]

If you spend more money extracting something than the worth of that something, you have materials which worth is exactly zero.

Exactly.
On top of the terrain being difficult and infrastructure being non existing, the Afghani mentality is that anyone wanting to mine in their country should pay the market price and beyond into their hands, cash today. Otherwise it's just a ploy to exploit their mineral resources.
That's not hoe the world goes round.
Same is the mentality in our own Balochistan and Parts of KPK.
What they don't realise is that mining is an expensive and risky business and companies don't always make money.
For example in Pakistan the average failure ratio for oil and gas drilling is 6 to 1.
Out of 6 Wells drilled only 1 produces commercially feasible oil and gas.
Then the company has to cover the costs of all failed Wells from one successful one. Then beyond that profit begins....After covering day to day running and maintaining costs.
Likewise the issue of making the money. The product needs to be sold to make money.
The psyche in Afghanistan Balochistan and Parts of KPK is that the minerals , and specially oil and gas should stay local and provided to local people "Free" .
If mined product is not sold and distributed free, what will the company get out of it? Nothing.
Then also the regional government will want royalty and land owners want rent and compensation.
So No matter how much minerals Afghanistan, Parts of Balochistan and KPK are sitting on , they will remain sitting on it , without making any money from it, unless the mentality changes.

 

[imadul]

Pakistan must help Afghanistan otherwise China will take all of it too.

....do we have any large mining company?
It is a business which requires big investment and tolerance for losses.
Pakistanies either become doctors, go for MBA, CA, and engineers. DCET, I guess had had mining engineering...but bright students go for EE, Comp. ENGG, Comp Sc.

 

[mmr]

Without political stability no MNC will invest.

Pak china iran and Russia all has to help afgan to develop these mines. Maybe then they wont be so dependent on aid and will be able sustain without outside interventions.

 

[Drizzt]

Exactly.
On top of the terrain being difficult and infrastructure being non existing, the Afghani mentality is that anyone wanting to mine in their country should pay the market price and beyond into their hands, cash today. Otherwise it's just a ploy to exploit their mineral resources.
That's not hoe the world goes round.
Same is the mentality in our own Balochistan and Parts of KPK.
What they don't realise is that mining is an expensive and risky business and companies don't always make money.
For example in Pakistan the average failure ratio for oil and gas drilling is 6 to 1.
Out of 6 Wells drilled only 1 produces commercially feasible oil and gas.
Then the company has to cover the costs of all failed Wells from one successful one. Then beyond that profit begins....After covering day to day running and maintaining costs.
Likewise the issue of making the money. The product needs to be sold to make money.
The psyche in Afghanistan Balochistan and Parts of KPK is that the minerals , and specially oil and gas should stay local and provided to local people "Free" .
If mined product is not sold and distributed free, what will the company get out of it? Nothing.
Then also the regional government will want royalty and land owners want rent and compensation.
So No matter how much minerals Afghanistan, Parts of Balochistan and KPK are sitting on , they will remain sitting on it , without making any money from it, unless the mentality changes.

50% of the profit should go to local government and 50% of the employment should go to locals. Why mining can only happen profitably when 100% or 99% of the profits be denied to locals.

If you are too selfish to let some benefit of mine go to locals, let the minerals sit there for future generations. They will not only mine it, but also do some value addition.

@jamahir you have something to add ?

 

[Aesterix]

50% of the profit should go to local government and 50% of the employment should go to locals. Why mining can only happen profitably when 100% or 99% of the profits be denied to locals.

If you are too selfish to let some benefit of mine go to locals, let the minerals sit there for future generations. They will not only mine it, but also do some value addition.

@jamahir you have something to add ?

The state shares the revenue earned with local government. However percentage varies.
International norm for land owner is 12.5% of revenue. That gets deducted from the total. Then federal tax is deducted. The remaining is shared with local government, and 50% of that is not uncommon to be shared .
However in Pakistan the 18th ammendment says that certain part of revenue collection is provincial government responsibility, and that includes sales tax on utility bills, such as gas.
That has been a problem. First the two probonces where people pay the least bills are Balochistan and KPK and no bills are paid in FATA (EX).
So when bills are not paid , the revenue is not collected and that massively effects royalty to land owners and any revenue share going to the province and the money to be shared was never collected.

 

[jamahir]

50% of the profit should go to local government and 50% of the employment should go to locals. Why mining can only happen profitably when 100% or 99% of the profits be denied to locals.

If you are too selfish to let some benefit of mine go to locals, let the minerals sit there for future generations. They will not only mine it, but also do some value addition.

@jamahir you have something to add ?

I generally agree with you. I will give the example of pre-2011 Gaddafi's Libya where the oil sales first were used by the governing system to not only build infrastruture but also to enable a welfare state and just before the 2011 invasion there was an internal proposal by the governing system that the oil sales should not only result in the previous two things but also something like 1000 dollars should directly go into the bank accounts of every native citizen every month. OK Libyan native population as per late 2000's was about five million so such a money transfer was possible.

As for your point about 50 percent local employment, I agree, but this of course will vary with the amount of local training in context of certain natural resources economy countries where there at technical managerial or supervisory positions there will be some foreign employees. I think in case of India this training of locals was done in the West and the USSR decades ago but in Afghanistan I don't think there will be more than a few local people with such knowledge.

 

[Imran Khan]

bs talks only they are sitting on hash

 

[Enigma SIG]

Pakistan must help Afghanistan otherwise China will take all of it too.

It will end up in the world's mobile devices.

 

[Drizzt]

I generally agree with you. I will give the example of pre-2011 Gaddafi's Libya where the oil sales first were used by the governing system to not only build infrastruture but also to enable a welfare state and just before the 2011 invasion there was an internal proposal by the governing system that the oil sales should not only result in the previous two things but also something like 1000 dollars should directly go into the bank accounts of every native citizen every month. OK Libyan native population as per late 2000's was about five million so such a money transfer was possible.

As for your point about 50 percent local employment, I agree, but this of course will vary with the amount of local training in context of certain natural resources economy countries where there at technical managerial or supervisory positions there will be some foreign employees. I think in case of India this training of locals was done in the West and the USSR decades ago but in Afghanistan I don't think there will be more than a few local people with such knowledge.

Instead of digging up ore and exporting at wholesale price to Japan China and West, They should focus on setting up refineries, to sell the refined metal to at higher pricing. These minerals are not oil, not so indispensable.