China’s MCC Turns Back on US $3 billion Mes Aynak Afghanistan Mine Deal

Mar 20, 2014 | Lynne O'Donnell
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Chinese state-owned mining giant MCC has been renegotiating a huge copper contract with the Afghan government to reduce its exposure to the war-torn country in a move that threatens Kabul's plans to use revenue generated by its mineral resources to bankroll development.

MCC has a US$3 billion deal to mine and process copper south of Kabul. With copper prices falling and the Chinese economy slowing, and security in Afghanistan deteriorating, the company has yet to begin production on the site and, according to mining industry and other sources, no longer wants to abide by the terms of the contract it signed in 2007.