From: Aftenposten
Date: 10.12.2009

Dette dokumentet er omtalt i følgende artikkel:


C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 003295
SIPDIS
DEPT FOR EAP/CM AND S/SRAP
E.O. 12958: DECL: 12/09/2019 
TAGS: EAID, ECON, EINV, EMIN, ENRG, MASS, PREL, PGOV, PTER, 
AF, CH, PK 
SUBJECT: CHINESE FIRM RE-THINKS AFGHAN MINING CONTRACT 
AFTER DIFFICULTIES OF THE AYNAK COPPER MINE PROJECT

REF: (A) KABUL 3574 (B) BEIJING 2918 (C) KABUL 3101
Classified By: Economic Minister Counselor William Weinstein. Reasons 
1.4 (b, d)

1. (C) Summary: China Metallurgical Group Corporation (MCC) 
President Shen Heting told a visiting U.S. delegation on 
November 12 that inefficiency and corruption in the Afghan 
government, security problems, and a lack of skilled Afghan 
workers had delayed work on the MCC's Aynak copper mine 
project. Shen asked for U.S. support in training Afghan 
National Police (ANP) deployed to protect the mine and 
insisted that the company would create jobs and carry out 
community projects. Highlighting the U.S. and China's shared 
interests in security and development in South Asia, Deputy 
Special Representative for Afghanistan and Pakistan Dan 
Feldman urged Shen to ensure MCC's investments in both 
countries contributed to economic stability in the region. 
Feldman emphasized the need for infrastructure development, 
anti-corruption measures, job creation and vocational 
training. End Summary.

Afghan Inefficiency, Security Concerns Slow Progress 
----------------------------------------------------

2. (C) Shen explained the MCC won the Aynak cooper mine 
tender among 6 bidders in 2007-8, and began construction on 
the mine in July 2009. He said MCC had encountered a number 
of difficulties that slowed progress on the project, 
including inefficiencies in the Afghan government, which Shen 
said had not honored its commitment to relocate a number of 
villages in the area, and security concerns. He also listed 
poor infrastructure, a shortage of skilled workers and lack 
of necessary supplies as other reasons for the slow pace of 
work. Citing the "low fighting capability" of the 1200 
Afghan National Police (ANP) deployed to protect the Aynak 
copper mine (after the Government of Afghanistan had promised 
1500 ANP guards), Shen requested U.S. assistance in providing 
them training and better weapons.

Chinese Government Urging MCC to Honor the Contract 
---------------------------------------------------

3. (C) Despite the difficulties MCC faced in Aynak, Shen said 
the Chinese government gave the company "clear instructions" 
to honor its contract and keep to the original schedule. At 
the same time, MCC did not believe it could ask the 
Government of China to intervene with the Government of 
Afghanistan to request additional security forces. While MCC 
planned to train local laborers to work in the mine, it would 
recruit Chinese engineers for the jobs requiring university 
qualifications. Shen said existing roads would be sufficient 
to transport the copper from the mine and that construction 
of a railway from the mine to the Pakistan port of Gwadar was 
not economically justified. However, he reiterated that the 
Chinese government was urging the company to honor its 
commitments, suggesting that MCC might eventually build some 
railway. (Comment: MCC has never before been so blunt with 
us about the fact that it is state-owned. Shen's repeated 
references to state instructions likely were his way of 
absolving the company of proceeding with what he saw as an 
economically unsound project.)

MCC Having Second Thoughts About Hajigak Tender 
-----------------------------------------------

4. (C) Although MCC was the leading bidder among the seven 
companies short-listed for the contract for the multi-billion 
dollar Hajigak iron ore mine in Bamyan, Shen said the company 
was "not prepared to move forward on the tender." He did not 
indicate that the company would withdraw its bid, but 
suggested the company was re-thinking its proposal given the 
many requirements and "difficult conditions" associated with 
the Hajigak project and MCC's experience with Aynak. He 
complained of rampant corruption among Afghan officials 
involved in mining tenders, commenting that MCC had 
encountered far fewer problems in carrying out two 
large-scale projects in Pakistan.

U.S. Urges MCC to Create Jobs, Promote Good Governance
------------------------------------------------

5. (C) Deputy SRAP Feldman welcomed Chinese investments in 
Afghanistan and Pakistan and urged MCC to support regional 
stability by ensuring its projects created jobs and promoted 
good governance by eschewing corrupt practices. Noting that 
training of the ANP was central to the U.S. strategy in 
Afghanistan, Feldman encouraged MCC to contribute to 
Afghanistan's security and the security of the Aynak mine by 
providing financial assistance or in-kind support to the ANP. 
Shen replied that MCC was committed to using part of its 
total investment of USD 4.4 billion to improve the lives of 
the local population. He said MCC had plans to set up a 
training center near the Aynak copper mine and to hire as 
many Afghan workers as possible. The company hoped to begin 
work on community projects - including schools, hospitals and 
a mosque - by the end of this year. 

HUNTSMAN