lithium

Will Mineral Deposits Bring Afghanistan Wealth or Warfare?

Topics: Economic Development
Countries: Afghanistan
These girls might be sitting on buried treasure. Photo: Cassandra Nelson/Mercy Corps
These girls might be sitting on buried treasure. Photo: Cassandra Nelson/Mercy Corps

Afghanistan may be home to $1 trillion in untapped mineral deposits, reports The New York Times. This is incredible news for a country that has been troubled by war for the past three decades. Although data on the deposits was actually drawn up by Soviets back in the 1980s, the Times report released earlier this week has everyone buzzing.

The central debate focuses on what this discovery will mean for Afghanistan. Will the deposits provide a much-needed economic revival, or make the country even more vulnerable to corruption and conflict?

Some people are hopeful, trusting the deposits to improve the country's economy and provide jobs. Thomas Gouttierre, director of the Center for Afghanistan Studies at the University of Nebraska at Omaha, describes the potential to The Christian Science Monitor:

This puts Afghanistan in a position where it can now work on its reconstruction and development with new resources ... that if exploited appropriately could incorporate many Afghans into the workforce in their country.... It helps [those trying to reconstruct the country] to have alternative economies.

Currently, Afghanistan’s economy relies primarily on illegal opium production -- a trade that fuels oppression and terrorism, points out The Huffington Post. The mineral deposits will potentially provide Afghans with a better economic base.

On the other hand, some worry that Afghanistan will fall prey to the “Natural Resource Curse,” NPR’s Planet Money explains:

Poor countries that are rich in natural resources tend to have more violent conflicts than countries with fewer resources. Their governments are more likely to be corrupt and authoritarian. And the people often don't get any richer when the government sells the country's resources on the global market.

CNN notes that natural resources have sparked fierce civil wars in places like Angola and the Democratic Republic of the Congo. Afghans are certainly familiar enough with war. Only time will tell whether the minerals spell more conflict, or will instead cut these people a much-deserved break.

Swapping Lithium for Oil

There are two salt deserts in Bolivia: the Salar de Coipasa and the Salar de Uyuni &mdash; both of which could be destroyed in the mining of lithium. Photo: <a href="http://www.flickr.com/photos/elizacole/334393039/">Jessie Reeder (flickr)</a>
There are two salt deserts in Bolivia: the Salar de Coipasa and the Salar de Uyuni — both of which could be destroyed in the mining of lithium. Photo: Jessie Reeder (flickr)

Does Bolivia have a resource as valuable as Saudi Arabian oil?

The auto industry has historically relied on oil to power cars, but is now turning to new sources of energy. Consequently, raw materials like the lithium in electric car batteries are now in demand.

Ford and GM have invested in the research and production of electric cars, while Toyota has announced plans to build a hybrid electric and start selling an all-electric car by 2012.

So where does Bolivia come into the picture? The introduction of the lithium-ion battery allows cars to go farther on a single charge, making them more convenient and economically viable. But there is a catch: The lithium needed for these batteries is a limited resource, and according to this BBC video report, half of the world’s supply is under Bolivia’s salt flats.

Bolivia, the poorest country in South America, could benefit enormously from mining and processing lithium. But extraction industries have always been controversial. Political tensions over exporting natural gas have ended two presidencies and led to calls for regional autonomy. These tensions have damaged Bolivia's tourism industry, which makes up 6.1 percent of Bolivia's economy.

Mining lithium poses a potential economic Catch-22. Most tourists are drawn by Bolivia’s unspoiled landscape, with the salt flats being a particular point of interest. Mining for lithium could destroy the salt flats, while processing could lead to environmental degradation.

Although electric cars have often been hailed as the future of an environmentally conscious auto industry, lithium has the same Achilles heel as oil: it is a scarce resource. In addition, it is unclear whether the auto industry will even have access to the amount of lithium they would need to launch these ambitious plans. Bolivia’s president Evo Morales is famously cautious about allowing foreigners to mine, and he's considered a fierce environmental protectionist. The decision to mine the salt flats is Bolivia's. Ultimately, the country will have to weigh the benefits of economic development against environmental protection, tourism and foreign influence.


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