Monday, June 14, 2010

Afghanistan: New Commodity Capital of the World?

Almost $1 trillion in mineral deposits have been found in Afghanistan, generating the question of whether there is an industry the people of Afghanistan can give themselves to in order to take their mind off of war and give hope to the region.

For years many outsiders have noted the country has little to offer in natural resources, and so had small chance of laying a foundation for a more prosperous future.

This isn't something that can be developed overnight, as it usually takes 10 years to get a mine going once the project is discovered.

Still, Afghanistan's future isn't one that can be looked upon as anything that will be successful in the short term, so it does not only give hope, but should put in place plans which will hopefully being the process sometime soon.

Some of the larger veins of minerals discovered include copper, cobalt, iron, lithium and gold.

The potential is evidently so great that it is expected significant investment could be brought to the country even before the mines are deemed profitable, although that is somewhat standard in the mining industry in general, this seems to imply proven reserves before operations even begin, making the potential for early investment a real possibility.

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