From: Aftenposten
Date: 21.10.2009

Dette dokumentet er omtalt i følgende artikkel:


C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 002918
SIPDIS
DEPT FOR EAP/CM AND S/SRAP
E.O. 12958: DECL: 10/21/2019 
TAGS: EAID, EINV, EMIN, ENRG, PREL, AF, CH 
SUBJECT: PRC/AFGHANISTAN: MCC ON THE AYNAK COPPER MINE PROJECT
REF: KABUL 3101
Classified By: Acting Economic Minister Counselor Robert Forden.
Reasons 1.4 (b, d)

1. (C) Summary: The political vacuum created by Afghan 
elections and "inefficient" work of the de-mining company has 
caused delays at the Aynak copper mine project, according to 
two executives at the China Metallurgical Group Corporation 
(MCC, the mine contract holder). The MCC officials requested 
U.S. assistance in expediting the de-mining process and 
expressed willingness to participate in consultations with 
the United States on Afghanistan economic development. They 
expressed mild concerns about security but commented that 
security at Aynak was "not as bad as imagined." The company 
hoped to begin small-scale production by the end of 2011 and 
large-scale production by the end of 2013 and eventually hire 
up to 4000 direct employees. Although the company was 
committed to hiring "as many Afghans as possible," 
significant job training would be necessary before MCC could 
reach its goal of having 80 percent Afghan workers. MCC 
planned a number of infrastructure and community projects, 
including new roads from Aynak and a power plant near the 
Bamiyan coal mine. The company was also considering 
construction of a steel plant if awarded the Hajigak iron ore 
contract. End Summary.

2. (C) EconMinCouns met MCC XXXXX and MCC XXXXX on 
October 21. XXXXX is responsible for oversight of the Aynak 
copper mine projects and makes regular visits to the mining 
site.

Delays Caused by De-mining Company and Elections 
------------------------------------------------

3. (C) XXXXX said MCC had been unfairly criticized for the 
slow progress on the project and blamed the delays on the 
"inefficient" company that received the contract to de-mine 
the surrounding area. He said the de-mining company insisted 
on clearing some areas that had already been de-mined, adding 
to the project costs and preventing MCC from carrying out 
other preliminary work. XXXXX asked the United States to 
help expedite the de-mining process. XXXXX said the Afghan 
elections had also impacted the project by creating a 
political vacuum and making the Afghan government even less 
efficient than usual.

Security Not as Bad as Imagined but Still a Concern 
---------------------------------------------------

4. (C) The security situation at the mine site was "not as 
bad as I imagined," said XXXXX, who last visited Aynak in 
July2009. Nevertheless, XXXXX said MCC still had security 
concerns, noting that insurgents had fired three rockets at 
the mine site in recent months. He expressed concern that 
terrorists were hiding in surrounding villages and complained 
that the Afghan National Police (ANP) assigned to the mine 
were afraid to go into the surrounding villages to root out 
the terrorists.

MCC Outlines Project Timeline 
-----------------------------

5. (SBU)
XXXXX said preliminary work on the project began in 
July 2009 with a site survey, de-mining of the site and other 
prep work. Once preliminary work is finished, MCC plans to 
begin phase one of construction of the mine. MCC expects to 
complete phase one by the end of 2011, at which point 
small-scale production would begin. MCC plans to expand 
production capacity during phase two and hopes to complete 
phase two and begin large-scale production by the end of 2013.

MCC: Our Goal is to Create Local Jobs 
-------------------------------------

6. (C)
XXXXX stressed that creating local jobs was one of the 
company's main goals, commenting that MCC would honor its 
commitment to the Afghan government to hire "as many Afghans 
as possible." XXXXX said the contract required MCC to 
hire a certain percentage of Afghan workers, from 50 percent 
when production started to at least 80 percent within eight 
years. MCC expected to hire 1500 workers by the end of phase 
one and eventually have 4000 direct employees, at least 80
percent of whom would be Afghan. XXXXX said hiring local 
workers would eventually lower costs and contribute to 
security, but the lack of skilled technical workers 
necessitated the use of skilled Chinese workers and training 
of Afghan workers in the short-term. He complained that 
delays caused by the de-mining company had prevented MCC from 
building a training center for Afghan workers.

MCC Planning Infrastructure and Community Projects 
--------------------------------------------------

7. (C) XXXXX downplayed the possibility of building rail 
lines from Aynak, commenting that building new roads would be 
sufficient to transport the refined copper processed at the 
mine. MCC also planned to build a power plant that would be 
powered by coal from the Bamiyan coal mine and would supply 
power to the Aynak copper mine. Asked about MCC's plans for 
community development projects, XXXXX said the company was 
"always considering" possible projects. XXXXX said MCC 
had plans to train local workers to grow vegetables and other 
food that could be sold to MCC for its workers. He said the 
local government supported the plan and had already set aside 
land for the project. XXXXX said the company planned to 
eventually build schools and mosques and provide water and 
electricity for the local community, but he did not specify a 
timeline for these projects.

MCC Considering Steel Plant at Hajigak 
--------------------------------------

8. (C) Regarding MCC's participation in the Hajigak iron ore 
tender process, XXXXX said MCC's proposal had received strong 
support from the Afghan government. He said if MCC was 
awarded the contract, the company would consider building a 
steel plant near the mine to process most of the iron ore in 
Afghanistan rather than transport it to China, hoping to 
capitalize on the growing demand for steel for construction 
projects in Afghanistan.

Af-Pak Consultations 
--------------------

9. (C) Noting the United States and China's shared interest 
in stability and economic development in the region, 
EconMinCouns raised the possibility of MCC's participation in 
the proposed U.S.-China consultations on Af-Pak. XXXXX 
replied that MCC was "willing to actively participate in 
talks." (Note: Since MFA and the Ministry of Commerce have 
not yet agreed to send a delegation to Washington for 
consultations, we did not formally invite MCC but only 
mentioned its participation as a possibility. It is unlikely 
that MCC would take part in consultations unless invited by 
the Chinese government.)

Complaints about Afghan Corruption and Inefficiency 
---------------------------------------------------

10. (C) Following the meeting, XXXXX told EconMinCouns 
privately that dealing with the Afghan government was a 
challenge because of the government's corruption and 
inefficiency. He said Afghan officials could not make 
decisions without getting approval from the highest levels of 
government, making it difficult for MCC to proceed with the 
project. In addition, everything required the approvals of 
numerous officials, to each of whom small payments would have 
to be made. XXXXX praised the World Bank for providing some 
oversight of the tender process for mining rights, commenting 
that the tender process would be even more corrupt without 
World Bank oversight.

HUNTSMAN