Rare-earth shortage? Afghans think they can help

2011-02-14 (China Military News cited from businessweek.com and written by ELENA BECATOROS) -- Amid surging demand for rare-earth minerals used in everything from cell phones to gas-saving cars, Afghans are dreaming of cashing in on vast deposits they believe lie beneath their feet.

The problem is that they are in one of the country's most dangerous spots, on the south bank of the Helmand River in southern Afghanistan, where fighting rages in a traditional Taliban stronghold.

That Afghanistan sits on vast mineral wealth has been detailed in several surveys, the most extensive of which were conducted by the Soviets in the 1970s. Mining companies, both Afghan and foreign, already have shown interest, notably in its copper, iron and oil.

Last month, Afghan officials proudly presented what they say is $3 trillion worth of deposits scattered throughout the country, more than triple the initial dollar amount estimated by the U.S. Defense Department last June.

But with poor infrastructure and security that ranges from precarious to downright prohibitive, there is a limit to how much the country can hope for, at least in the medium term.

Among the most exciting right now are the rare earths, with a spat between China and Japan last fall highlighting China's near-monopoly on the minerals.

In 2007 the U.S. Geological Survey estimated 1.4 million metric tons of rare-earth elements lie in southwest Helmand. The Afghan Ministry of Mines says there is more elsewhere in the country, "huge deposits" overall, according to Jalil Jumriani, who deals with policy and promotion at the ministry in Kabul.

The U.S. Defense Department's Task Force for Business and Stability Operations estimates the Khanneshin area in Helmand holds some $89 billion in rare earths and niobium, minerals strategic for high tech and industrial industries.

"This deposit could represent a long-term development opportunity for Helmand province that would create jobs across the spectrum from low-skilled laborers to chemists, physicists and engineers," the task force said in a statement last month.

USGS scientists are analyzing samples taken over the past 18 months from Helmand to determine what exactly is there in the way of the 17 rare-earth minerals.

Jack Medlin, a USGS specialist, said it was too soon to call it "a world-class rare-earths deposit. We're not there yet. We will be there probably by midsummer."

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