Logar Province: Chromite Smuggling Undermines Afghan

UNCLAS KABUL 000325 SIPDIS DEPARTMENT FOR SCA/FO, SCA/A, S/CRS, EUR/RPM STATE PASS TO USAID FOR AID/ANE, AID/DCHA/DG NSC FOR WOOD OSD FOR SHIVERS CENTCOM FOR CG CJTF-82, POLAD SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV KCOR ECON EINV EMIN PK AF SUBJECT: Logar Province: Chromite Smuggling Undermines Afghan Government REF: KABUL 0108 ¶1. (SBU) Summary: Logar Province's Governor, Provincial Council (PC),and Members of Parliament (MPs) decried the widespread smuggling of chromite (a mineral used in the manufacture of steel and chemicals) by Pakistani smuggling mafias. The officials have repeatedly raised the issue with Minister of Mines Adel and have also unsuccessfully asked the Ministry of Interior (MOI) to secure the mines. Logar officials recognize that a potential valuable source of revenue for the GIRoA is lost. They are concerned that smuggling mafias contribute to the vulnerable security situation in Logar and are a corrupting influence on local officials. Governor Wardak, the Provincial Council (PC),and Logar MPs have agreed to work together to keep the pressure on the central government and are pushing for mine security and a transparent bidding process for mine exploitation. LARGE-SCALE CHROMITE SMUGGLING TO PAKISTAN -------------- ¶2. (SBU) The Logar PC first raised the issue of wholesale chromite smuggling from 14 sites in five Logar districts in December 2007. (The five districts are Pul-i Alam, Mohammad Agha, Kharwar, Azra, and Baraki Barak. Of these, Kharwar has the worst security situation in Logar with significant anti-Coalition militia (ACM) presence. The other districts all suffer from varying levels of criminal activity and sporadic ACM presence.) PC members alleged that Pakistani smuggling mafias organized the operations. According to PC members, except during the winter when the roads are impassable, Pakistani smugglers pay off local authorities, especially the Afghan police, so they can smuggle large quantities of chromite. The PC members, who regularly visit the five districts, estimate that the smugglers fill approximately 400 large trucks per month during an eight-month period of good weather. Each truck can hold 20-25 tons of chromite. These are surface deposits, and the smugglers use local labor to extract the mineral. ¶3. (SBU) The PC members stated their sources told them chromite is sold in Pakistan for about USD 100 per ton. The smuggling routes are the Azra to Pul-i Alam road, then the Pul-i Alam to Jaji district (Paktia province) road, and across the Paktia-Pakistan border. A second route is the Pul-i Alam to Gardez (Paktia) road through the Tera Pass, then from Gardez to Khost through the Khost-Gardez Pass, and across the Khost-Pakistan border. The smugglers reportedly pay off local police and border guards and avoid public scrutiny by moving the loads at night. One Logar MP said that the smugglers had made an attempt on the life of Azra district's police chief in July 2007 because the police chief was trying to stop the smugglers. The smugglers put an IED along the Azra road targeting the police chief, but missed him and instead killed three of his bodyguards. According to Logar officials, the locals understood the smugglers' message and now abet the smugglers by providing local labor and/or looking the other way. ¶4. (SBU) PRTOff made inquiries with Pul-i Alam district officials and with technical staff at the Ministry of Mines (MOM) to determine whether a survey of Logar chromite mines had been undertaken. None of the officials knew of any past surveys. PRTOff raised the issue with Logar Governor Wardak, who stated he is pressing the MOM to open an office in Pul-i Alam and name a provincial line director to do a technical study of chromite deposits. PRTOff briefed the Czech Republic's advance team preparing to install a PRT in Logar in March. The civilian head of the team committed to follow up on the issue and said that the Czech PRT team would include a geologist. ¶5. (SBU) Although there is not enough information to determine the potential value of Logar's apparently large and easily extractable chromite deposits, it is clear from the smugglers' level of activity that it is highly profitable. Unfortunately, until the central government focuses on this issue, it will continue to lose revenue it can ill afford to ignore. We will raise this question with Minister Adel at the next opportunity, and ask how addressing these issues might fit into his plans for MOM activities in 2008 (ref). WOOD