VZCZCXRO7588
PP RUEHPW
DE RUEHBUL #2269 2380546
ZNR UUUUU ZZH
P 250546Z AUG 08
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 5243
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC 0661
RUCNAFG/AFGHANISTAN COLLECTIVE
RUEKJCS/OSD WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUEABND/DEA HQS WASHINGTON DC
RHMFIUU/HQ USCENTCOM MACDILL AFB FL
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS KABUL 002269 
 
DEPARTMENT FOR SCA/FO, SCA/A, EUR/RPM 
DEPT PASS AID/ANE, OPIC 
DEPT PASS USTR FOR LILIENFELD AND KLEIN 
DEPT PASS OPIC FOR ZAHNISER 
DEPT PASS TDA FOR STEIN AND GREENIP 
CENTCOM FOR CG CSTC-A, CG CJTF-101 POLAD 
NSC FOR WOOD 
TREASURY FOR ABAUKOL, BDAHL, AND MNUGENT 
PARIS FOR USOECD/ENERGY ATTACHE 
OSD FOR WILKES 
COMMERCE FOR DEES, CHOPPIN, AND FONOVICH 
TOKYO ALSO FOR AID COUNSELOR AANENSON 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958 N/A 
TAGS: EMIN EPET EFIN ETRD ENRG KPWR EAID AF CH
SUBJECT: PRT BAMYAN: MINISTER IGNITES HOPE FOR ENERGY, IRON 
PRODUCTION 
 
¶1. (U) Summary:  Minister of Mines Muhammad Ibrahim Adel concluded a 
week-long visit to Bamyan to explore the feasibility of a coal 
driven power plant and conduct a site visit to the Haji Gak iron 
deposit.  Accompanied by a team of international and national legal 
and technical experts, Minister Adel spent most of his visit 
exploring central and northern Bamyan.  At the conclusion of his 
trip, the Minister was optimistic about prospects for an 800 MW coal 
fired power plant and soliciting bids for exploitation of the Haji 
Gak iron deposit by December 2008. 
 
Using Bamyan Coal to Power Kabul and Mining 
------------------------------------------- 
 
¶2. (SBU) As a part of the Anyak Copper Mine bid and resulting 
contract, the Chinese firm MCC committed to building a 400 MW coal 
fired power plant to fuel mining operations.  Minister Adel was 
tasked with exploring the feasibility of increasing the plant's 
capacity to 800 MW.  The additional 400 MW would serve Kabul's 
energy needs and possibly iron mining operations in Haji Gak 
district.  According to Bamyan Governor Sarabi, Kabul sees the 
Ministry of Mines and its power-related projects as an alternative 
to the Ministry of Water and Power's slow pace initiating power 
imports. 
 
¶3. (SBU) While Bamyan's Kahmard district holds the best known Afghan 
coal deposits, the Minister conducted initial assessments of the 
less developed coal deposits in Yakawlang and Sayghan districts. 
Two Chinese power engineers accompanying the Minister estimated 
there are significant coal deposits in the new locations, especially 
in Yakawlang.  The Chinese engineers also assessed that an 800 MW 
power plant may be viable.  No testing has been done, however, to 
determine the BTU (British Thermal Unit) value of this coal, how 
well it would burn or how much energy it could produce.  (Embassy 
Kabul Comment: Without additional field testing and/or further 
exploration it is not known whether Bamyan coal deposits could 
support an 800 MW power plant.  Experts familiar with the original 
400 MW plant plans estimate it would burn over 1.5 million metric 
tons annually.  Afghanistan currently lacks the capacity to mine 
such a large quantity.) 
 
Mining and Industry Hopes for Bamyan 
------------------------------------ 
 
¶4. (U) In addition to the mining operation in Haji Gak, the Minister 
also discussed a steel factory planned for the Dasht-e-Qashka area 
of Bamyan.  He estimated this factory and associated facilities 
would support thousands of jobs. In his concluding press conference, 
the Minister said he would solicit bids for the Haji Gak Iron Mine 
by December 2008. (This date depends on the Ministry's ability to 
prepare the necessary tender documents.) 
 
¶5. (U) Comment: Large-scale coal and iron mining would introduce the 
first major industrial activity in Bamyan.  The level of Chinese 
involvement in the Minister's assessment and MCC's successful bid 
for the Anyak Copper Mine, with its attendant transportation and 
power commitments, could advantage Chinese companies bidding on the 
Haji Gak deposit.  Eighty-six percent of Bamyan's population 
subsists on agriculture; the cash brought by industrial jobs could 
help ease tension over land ownership and alleviate some poverty in 
the province, but should be carefully monitored.  Such industrial 
activity as proposed by Minister Adel could profoundly impact 
Bamyan's environment and cultural heritage (Dasht-e-Qaska is located 
near the Red City Heritage Site). 
 
WOOD