Regions

Chinese landmark copper deal with Afghanistan at risk

August 26
5:28 PM 2013

The Ministry of Mines of China said a consortium of investors had asked a USD3 billion landmark deal to be reviewed. This was after the landmark  had been producing copper in Afghanistan was seen to give hope for the economic independence of that country.

In a statement, China Metallurgical Group and Jiangxi Copper had wanted new terms. Under the said terms, the companies would cut their given royalties to the government. This in turn would release them from the requirement of building a copper smelter and power. This would also mean a postponement in the construction of a railway.

A spokesperson for the Ministry said, "The Afghan government is trying its best ... to negotiate with the company but contract conditions are clear and previously both sides have agreed about it."  A spokesperson from the China refused to give statements regarding the matter.

Copper deposits had become the world's biggest potash commodities. However, these are situated in dangerous locations that were often attack by insurgents.

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