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