China Oil Deal With Taliban: Even after several months of Taliban rule in Afghanistan, the economic situation has not improved. The situation of poverty and hunger in the country is still intact. Meanwhile, the dragon has a keen eye on the treasure of Afghanistan. After the capture of the Taliban and the withdrawal of American troops, China is now eyeing the treasure hidden in the soil of Afghanistan.
China has got a big opportunity to take advantage of the country’s rich treasury (Rare Earth Element) through its new agreement with the Taliban. With this deal, it can increase its dominance in the field of rare minerals.
The Dragon’s Eye on Afghanistan
The Taliban regime in Afghanistan made an international agreement with China to extract oil from the Northern Amu Darya Basin. The Chinese Xinjiang Central Asia Petroleum and Gas Company (CEPAIC) signed an agreement with the Taliban-led regime. On January 5, 2023, Sheikh Shahabuddin Dilawar, acting minister of the Taliban’s mining and petroleum department, announced a deal in which a Chinese company would extract oil from the Amu Darya basin in northern Afghanistan.
How will Afghanistan benefit?
Taliban regime spokesman Zabihullah Mujahid said in his tweet, “The company will invest $ 150 million in one year and $ 540 million in the next three years.” He told that this project will give employment to about 3000 Afghan people, which will boost the country’s economy and development. Taliban regime will get 15 percent royalty fee from this 25-year contract. The five blocks are estimated to hold 87 million barrels of crude
Dragon eyes on Afghanistan’s treasure
Afghanistan is likely to have rare minerals worth $1-3 trillion in addition to large amounts of oil. According to media reports, apart from aluminium, gold, silver, zinc, mercury and lithium, rare earth minerals such as lanthanum, cerium and neodymium are estimated to exist in Afghanistan. China has been trying to expand opportunities to extract these rarefied treasures in the absence of major competition in the country.
China’s dominance over rare earths will increase further? >
According to a report by the United States Geological Survey, China dominates the global market for rare earth elements. China is believed to be the largest producer and supplier of rare earths. These rare minerals are used in technical industries such as electronics, defense and renewable energy. However, China is also facing increasing competition in the global market for these minerals. In such a situation, the treasury of Afghanistan can prove to be very beneficial for him.
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