Fallout from fall of Chinese executive who sealed copper mine deal in Afghanistan
Although Shen Heting’s expulsion from the party was not related to Afghan project, mining has not begun a decade after rights were agreed to
The disgrace last week of the businessman who won a deal in 2007 for China to develop a copper mine in Afghanistan, which was the largest foreign investment deal in the war-torn country at the time, has highlighted the lack of progress on the project over a decade.
Shen Heting, the former general manager of the China Metallurgical Group Corp (MCC), a state-owned company, was expelled from the Communist Party for corruption at home, according to a notice from China’s State-owned Asset Supervision and Administration Commission, Beijing’s state assets watchdog. Being expelled from the party is a de facto political death sentence for a state company executive.
Shen’s downfall wasn’t related to China’s controversial Mes Aynak copper mine, but the failure of Shen’s consortium to profit from the headline-grabbing deal over the last decade exposes pitfalls in Beijing’s state-backed strategy of investing abroad to obtain resources and influence.
The deal was deadlocked by multiple issues including China’s concern at security problems in the war-torn country and a refusal by the Afghan government so far to renegotiate the contract terms in line with difficulties obtaining some necessary mining materials inside the country. In addition, local residents, archaeologists and environmentalists worldwide have strongly resisted the mining project as last ditch efforts are made to unearth and preserve the site and its treasure trove of Buddhist artefacts.