DUBAI (Reuters)-India after Poland, investors are tempted by the promise of lucrative returns in Afghanistan's mining and energy industry, but most say, will see how play an angry uprising, before you your money.
Afghanistan is estimated that sits up to billions of dollars value of untapped mineral deposits but near war ten years old and weak infrastructure in regions of the country mean, could it take to start years production in many areas.
The Afghan Government to reduce dependence on foreign aid money, trying to attract investors from a sector known to operate in hostile environments with the promise of improving the stability and the official protection.
The rewards are to convince enough though, of courageous is many to the uprising at its most violent since the fall of the Taliban in 2001, or take a gamble on whether the current Government will survive the planned withdrawal of foreign troops.
"Everyone is ready to go there to invest, but your only concern is the security," a Dubai said resident Indian businessmen who wanted to remain anonymous.
"If the security is only slightly better, people move on because exists a shovel in this country."
Mining and energy are the bulk of the projects now curl probably serious foreign money.
On Tuesday, the Italian Foreign Minister said Italian oil and gas group ENI (ENI.MI) was looking to invest in Afghanistan's energy sector.
The Aynak copper mine, a project worth more than $4 billion secured by metallurgy Corporation of China Limited (1618.HK) (MCC), with the production of 2013 expected started.
Government security it shows Kabul Ernst promises significant investments is to protect.
"We are patrolling around the project area the project forward with 1,500 police set professionally by the Government to push" Zou Jianhui, Director who told the Conference MCC Aynak joint venture, said investment.
HIGH RETURNS?
This up-front investment in security is because Afghanistan aims that mining and energy in 5 years time to attract from annual income up to $ 1.5 billion investment, said Minister of mines Wahidullah Shahrani.
Untapped mineral resources include iron ore, copper, lithium, oil and gas, and gems and precious metals.
"In the long run as 15 years, government revenue relating to mines are annually $3 to $3.5 billion," he said.
Potential revenue from lithium production are now examined and are not included in these figures, he added.
The highly reactive metal used in batteries for electric and hybrid vehicles could be an important resource for Afghanistan together with copper and iron.
Demand will double in the next decade as get more electric vehicles on the road.
"We observe are what your lithium reserves do", a Japanese banker whose undertaking does not have currently no investments in Afghanistan said.
"We are in investment in this sector, but not now, perhaps in the next few years", he said.
But for the bravest investors the security problems that the other discourage are a sign of greater potential rewards.
"The best is what at the moment where there is risk, good profit," said an Afghan entrepreneur Dayani Hayat, works in the construction sector and returned to Kabul after 20 years in Germany spend.
"For business people to take the best time, I would suggest that investors read so much television and not too many newspapers." "Because to Afghanistan to assess, not good just by the media because bad news sells."
(Reporting by Humeyra Pamuk;) (Manipulating Emma Graham Harrison and Alex Richardson)
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