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Executive Summary global witness “We are at risk of the curse of plenty, [the] curse of resources.” Ashraf Ghani, President of the Islamic Republic of Afghanistan1 “The mine belongs to the whole nation. It is for all of us.” ‘Haji Anwar’, a miner from Badakhshan2 “This mine is itself a general (…) It will make people fight.” ‘Haji Bashir’, an elder from the district of Kuran wa Munjan3 WAR IN THE TREASURY OF THE PEOPLE | JUNE 2016 1 Contents Executive Summary 5 Lapis and tourmaline: jewels in the crown 5 Signs of hope? 7 Recommendations to the Afghan government 7 Recommendations for Afghanistan’s international partners 8 I. Introduction 10 Box 1: Key Players 12 II. A prize worth fighting for: mining as a direct source of conflict 13 Box 2: Zulmai Mujadidi and the levers of power in Badakhshan 14 The Malek coup 14 Box 3: Fighting since the coup: an overview 16 A lost chance for peace? 17 A game of networks 17 A target for the Taliban: mining and the insurgency 18 Diagram: Links between Badakhshan and national political actors 19 Mines and the Islamic State 20 III. Fueling conflict: abuses and resentment around mining 22 Kuran wa Munjan: a people’s uprising? 22 New faces, same system 22 ‘Like a lion hunting’: tourmaline mining and abuses in Deodarra 23 Abuses by Afghan Local Police forces 25 Fuel on the Fire: Abuses and the Insurgency 26 “The government is more rotten than the Taliban” 28 IV. A treasury for violence: who gains and who loses from the mines 29 Money for Malek 29 The Mujadidi brothers and ‘pro-government’ armed groups 30 Funding the Insurgency 32 Diagram: Payments to the Taliban 34 Box 4: The Onward Trade 36 Continued 2 WAR IN THE TREASURY OF THE PEOPLE | JUNE 2016 V. Contracts and Corruption 39 Pamir Badakhshan International Mining 39 Diagram: The PBIM tourmaline contract 40 The Baharak ‘contract’ 43 The Lajwardeen contract and the Ministry of Mines 43 Diagram: Lajwardeen lapis Contract 43 Box 5: Weaknesses in the Lajwardeen lapis contract 46 The final insult: $2.4m missing from one convoy 49 Timeline 50 VI. Policy Implications and Recommendations 53 Recommendations to the Afghan Government 55 Recommendations for Afghanistan’s international Partners 59 Annex A: Lapis mining in Kuran wa Munjan 61 Annex B: Prices cited for lapis and tourmaline 69 Annex C: Cast of characters, contracts and companies 73 Annex D: Glossary of unfamiliar words and terms 78 Endnotes 81 WAR IN THE TREASURY OF THE PEOPLE | JUNE 2016 3 70°30'0"E 71°0'0"E Kokcha River Faizabad District Arghanjkhwa R Faizabad District RAryan Baharak RArgo Shuhada Argo District Baharak District District RM Khash 37°0'0"N R 37°0'0"N Deodarra Darayem Ì M Pul e Ali Mughul Teshkan R Khash R Darayem Jurm District R Keb District ( RKeshem Warduj Teshkan Pul e Such M Keshem Firgamiru Jurm District Kabul via Kunduz & Baghlan Kunduz & via Kabul District ( District Ob e Roghak M District Teer Garan Khostak valley R Ob e Khestak M Ob e Djokham M Yamgan M R Tagab Mir Kan Kokcha River 36°30'0"N R District Yamgan 36°30'0"N District B a d a k h s h a n Zebak B a d a k h s h a n District Farkhar P r o v i n c e District Robat e Bolo ( Jangalak block Sar e Sang Junduk and Petawuk M Ì block T a k h a r P r o v i n c e ( Lajwardshoh Ì Chelemuk block Warsaj PAKISTAN District Kuran wa Munjan Chitral District Skazer( R 36°0'0"N 36°0'0"N ( Anjuman Kuran wa Munjan Anjuman Pass District N u r i s t a n P a n j s h i r P r o v i n c e Barg e Matal P r o v i n c e District Paryan District Mandol District Kabul via Panjsher via Kabul 70°30'0"E 71°0'0"E Legend 0 10 20 30 4050 Km M Checkpoints/incidents (2014) Primary road network ° Projection/Datum: Geographic/WGS84 Ì Mining sites Major rivers/water R District Center Rivers/streams Date Created: 27 April 2015 Data Source(s): ( Town/village mentioned in text Provincial boundaries UN Office for the Coordination of Humanitarian Affairs (UN OCHA), Lajwardeen contract concession blocks District boundaries AGCHO, CSO, AIMS, MISTI. http://www.humanitarianresponse.info/en/operations/afghanistan/datasets Map production: Panagiotis Nyktas 4 WAR IN THE TREASURY OF THE PEOPLE | JUNE 2016 60°0'0"E 62°0'0"E 64°0'0"E 66°0'0"E 68°0'0"E 70°0'0"E 72°0'0"E 74°0'0"E UZBEKISTAN TAJIKISTAN CHINA 38°0'0"N 38°0'0"N TURKMENISTAN Kunduz. 36°0'0"N 36°0'0"N KabulZ Peshawar . 34°0'0"N AFGHANISTAN 34°0'0"N IRAN PAKISTAN 32°0'0"N 32°0'0"N INDIA 30°0'0"N 30°0'0"N 60°0'0"E 62°0'0"E 64°0'0"E 66°0'0"E 68°0'0"E 70°0'0"E 72°0'0"E 74°0'0"E Badakhshan Province 0 100 200 300 400 Km Date Created: 27 April 2015 Data Source(s): U.S. Department of State, Office of the Geographer ° Map production: Panagiotis Nyktas Projection/Datum: Geographic/WGS84 List of Acronyms and Abbreviations AK-47 Avtomat Kalashnikova, aka Kalashnikov 7.62 x 39mm assault rifle ALP Afghan Local Police ANA Afghan National Army ANP Afghan National Police Afs Afghanis (Afghan currency) bn Billions DDR Demobilisation, Disarmament, and Reintegration IED Improvised Explosive Device IMU Islamic Movement of Uzbekistan IS Islamic State – also known as ISIL (Islamic State of Iraq and the Levant), and ISIS (Islamic State of Iraq and ash-Sham LMC Lajwardeen Mining Company m Millions MPF Mining Protection Force (kita e muhafizat e ma’dan) OECD Organization for Economic Cooperation and Development PBIM Pamir Badakhshan International Mining PK Pulemyot Kalashnikova, a Russian-made 7.62 x 54 mm machine gun (acronym can also be used as a generic term for a light machine gun) RPG Rocket Propelled Grenade trn Trillions A rate of US $1=56 Afghanis was used for the majority of currency conversions in the report – a rough average of the rate from June 2013 to early 2015. The Afghani began significant depreciation from about April 2015, and for data from this date to May 2016 an average rate of 62.5 Afghanis was applied. For data prior to June 2013 a rough average of $1=50 Afghanis was used.4 WAR IN THE TREASURY OF THE PEOPLE | JUNE 2016 5 Summary The mines of the rugged northeastern province of foreign aid, rely on their development. But they Badakhshan are one of the richest assets of the threaten to do the opposite – to be a chronic source Afghan people, an extraordinary national treasure of conflict and corruption, while generating little that should be a powerful resource for development. revenue. Improving the governance of the whole Instead, as a two year investigation reveals, they are a sector is not just a matter of legality or of morality: major source of conflict and grievance, supply millions it is of fundamental importance to the future of of dollars of funding to armed groups, insurgents, and the country. strongmen, and provide a tiny fraction of the benefit they should to the Afghan people. Without a coherent That urgency has not so far been adequately reflected response, these mines – and others like them across in the policy of either the Afghan government or Afghanistan – represent not just a lost opportunity, its partners – despite some distinctly encouraging but a threat to the whole country. recent announcements. They should make it a first- order priority, first by increasing accountability, The direct rivals in the violent competition for transparency, and local engagement around mining Badakhshan’s ancient lapis lazuli mines are two local (notably in the mining law), and by prioritising strongmen. Both have exploited the mines, both have security in mining areas. Badakhshan, where both links to national politics, and both allegedly have the scale of the threat and the potential reward are had back-door ties to the Taliban. According to rough disproportionately high, is worth particular attention but plausible estimates, the revenue going to these – but reform is needed for the whole country. With strongmen and the Taliban from just one small area some basic safeguards yet to be implemented, of Badakhshan rivals the government’s declared effective action is possible. income from the entire Afghan natural resources sector. For now, the lapis which supplies much of the world market is, by any reasonable definition, Lapis and tourmaline: jewels in the crown a conflict mineral. Global Witness’ research covered two of the most This struggle is one of resources, not ideology: a important minerals in Badakhshan, lapis lazuli and “business war.” But it has nonetheless created the tourmaline – semi-precious decorative stones mainly conditions in which the Taliban – who have a close relationship with the local affiliate of the Islamic State – threaten to take the mines, and already control much of their revenue. And it is a major reason why a province which resisted the Taliban at the height of their power is now one of their strongholds. Amid the conflict and lawlessness around the mines, it is the insurgency that has benefitted above all. Badakhshan illustrates wider dangers around Afghanistan’s natural resources. Mining is implicated in violence from Balkh to Helmand.
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