Chinese company ventures into Afghanistan in oil extraction deal

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It will be the Taliban’s first large commodities mining transaction since taking power

The flags of China and the Islamic Emirate of Afghanistan in Kabul. Picture: ALI KHARA/REUTERS

It underscores neighbouring China’s economic involvement in the region even though the Islamic State militant group has targeted its citizens in Afghanistan. “The Amu Darya oil contract is an important project between China and Afghanistan,” China’s ambassador, Wang Yu, told the news conference. The Taliban-run administration will have a 20% partnership in the project, which can be increased to 75%, he added.

Acting deputy prime minister Mullah Baradar told the news conference another Chinese company, which he did not identify, did not continue extraction after the fall of the previous government so the deal was struck with CAPEIC.

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