Quote:
Originally Posted by blacksmoke
What about Afghanistans mineral wealth? Will production of that ever come on line or will they continue to export poisons to the world? IMO, the farmers who can't get by on wheat should have to option to switch to marijuana, but not opium. Of course land that will not support much wheat also may not support marijuana.
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The existence of minerals does not imply mineral wealth.
It is the hand and mind of man which turns that dirt into wealth.
That stuff is not ore to companies which act safely and treat employees well; it's just dirt.
As TR implied, it might be ore to China.
China isn't quite as restrained as other nations when it comes to mining.
http://www.nytimes.com/2010/06/20/we...0Plenty&st=cse
Quote:
Because it takes up to 20 years for a mine to start earning profits and Afghanistan has been a battleground for 31 years, “no mining company in its right mind would go into Afghanistan now,” said Murray W. Hitzman, a professor of economic geology at the Colorado School of Mines.
<snip>
Compared with those countries, Afghanistan is at disadvantage, mining experts said. Even for $1 trillion, its riches may not be worth digging up.
Compared with oil drilling, minerals mining is extraordinarily expensive and time-consuming. As everyone from Jed Clampett to BP has discovered, a bubblin’ crude can emerge under its own pressure as soon as the earth’s surface is pricked.
Diamond mining is also comparatively cheap — diamonds are formed in pipes of softer kimberlite pushed up by volcanoes and usually mined in open pits or dug out of the beds of rivers that washed the volcanoes away. After that, they are simply sorted out of the gravel.
But gold, silver, copper and other minerals are usually locked in ore that must be tunneled down to, blasted out by the ton, carried to the surface, and ground into powder for processing. Digging the shafts and building elevators, processing plants, railroads and tarmac roads “can cost hundreds of millions to billions for a single mining operation,” said Roderick Eggert, director of the economics division at the Colorado School of Mines. “Even a small gold mine is $100 million.”
And while an oil well can go from discovery to production in two or three years, “it would take 5 to 15 years to go from where most of Afghanistan is now to an operating mine,” he said.
After that, added his colleague Dr. Hitzman, “even with a good mine, it takes 5 to 10 years to recoup your investment. What’s Afghanistan going to be like in five years?”
Also, someone must provide security, and 20 years of security by the United States military would cost hundreds of billions of dollars.
England, Holland, Spain, Portugal and Japan all discovered that the costs of policing empires outweighed the financial gains and that it was more practical to let private companies shoulder the risks. Mineral prices fluctuate wildly, and $1 trillion today may soon be much less. Gold broke the $1,000-an-ounce barrier for the first time last year. But it had hit $873 in 1980 — the equivalent of $2,300 today — and then languished under $500 for years.
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Additional reading for those who are really bored:
(Scroll down and you can read the online version for free).
http://www.nap.edu/catalog.php?record_id=12034