【09.11.22 每日电讯报】China pumping millions into Afghanistan

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China pumping millions into Afghanistan
http://www.telegraph.co.uk/news/worldnews/asia/afghanistan/6630574/China-pumping-millions-into-Afghanistan.html

By Ben Farmer in Kabul Published: 5:37PM GMT 22 Nov 2009

China's growing influence in the Afghan economy has been hailed by the country's mining minister who has revealed that projects acquired to feed Beijing's industrial base will triple government revenues within five years.

China's growing influence in the Afghan economy has been hailed by the country's mining minister, who has revealed that projects acquired to feed Beijing's industrial base will triple government revenues within five years.

Muhammad Ibrahim Adel, the minister for mines, said foreign investment in the country's vast mineral deposits would bring $2 billion (£1.25 billion) in taxes and royalties a year by 2013. "Within five years I hope the government will be getting $2 billion a year from mining, not including the salaries people earn," he told The Daily Telegraph.

Afghanistan has the potential to emerge as one of Central Asia's biggest sources of raw materials for manufacturers.

China paid $800 million to acquire the Aynak copper deposit 30 miles south of Kabul two years ago and has emerged as the favourite from a pool of Indian and Saudi firms to gain control of an iron ore deposit at Hajigak, 60 miles west of Kabul, when tenders are considered next year. Both deposits rank among the world's largest and entail the construction of roads, processing plants and railways in deprived areas that are currently dominated by the Taliban.

The burgeoning Chinese role in Afghanistan has provoked a backlash, with allegations of corruption emanating from American officials. A new FBI-style major crimes unit, set up with British and US police involvement, is reported to have gathered enough evidence to issue arrest warrants against Mr Adel and another cabinet minister Sediq Chakari, the minister of hajj and Islamic affairs.

Last week an American newspaper said that Mr Adel had accepted a $30 million bribe from the Chinese bidders for Aynak. Mr Adel rejected the accusations in a statement. "I am responsible for the revenue and benefit of our people," he said. "All the time I'm following the law and the legislation for the benefit of the people."

The Chinese firm developing Aynak plans to employ 20,000 Afghan workers at the site and has the reassurance of a massive police presence backed up by US special forces security assistance. Even so the facility is barricaded by sandbags and a wall of iron shipping containers surrounds the perimeter.

Afghanistan recorded government revenues of just $800 million last year and the World Bank has concluded that mining revenues are the best hope of building a recurring income stream for a war-torn economy blighted by corruption and weak government.

International donors have been left a steeply rising bill to prop up the state, including billions to train and equip a police force and army seen as critical to defeating the Taliban.

Efforts to train and equip the police and army by the US cost $3.6 billion alone this year and its overall assistance to the country is expected to rise to $10 billion in 2010.