New Delhi(ABC Live): India faces complex diplomatic and ideological challenges in dealing with Taliban-led Afghanistan. These challenges range from stalled projects like the Hajigak iron ore to promising lithium reserves. Meanwhile, as China and Pakistan intensify their investments, India is quietly reassessing its mineral cooperation with Afghanistan.

The Hajigak Iron Ore Opportunity That Stalled

India once held rights to Hajigak iron ore, one of the world’s richest deposits, containing nearly 2 billion metric tons of high-grade ore. A consortium led by SAIL (Steel Authority of India Ltd.) was preparing to begin extraction. However, the Taliban takeover of Kabul in 2021 abruptly halted all progress.

At present, as Afghanistan seeks to revive mining investments, India is exploring ways to re-engage. In fact, it may potentially shift its focus from Hajigak iron ore to lithium opportunities.

Afghanistan’s Lithium Reserves and India’s EV Ambitions

Afghanistan possesses significant lithium deposits across Ghazni, Helmand, and Nuristan provinces. For India, these reserves are critical to supporting its electric vehicle (EV) battery production and broader green technology goals.

Given concerns about a Chinese monopoly on lithium and rare earth elements, India is therefore considering selective re-entry into Afghan mining projects. Notably, the emphasis is shifting toward lithium, following the Hajigak iron ore initiative.

India’s Quiet Return: Technical Engagement Without Formal Recognition

Since late 2024, India has quietly resumed contact with Afghan officials through backchannels in Doha and Moscow. Reportedly, discussions include:

• Resuming Hajigak iron ore development under revised terms

• Launching joint lithium exploration projects, linking Hajigak’s iron ore potential to lithium

• Establishing training centres for Afghan engineers in Kabul and Herat

This strategy of technical engagement without formal recognition closely mirrors the approach taken by Uzbekistan in similar circumstances.

Uranium and India’s Strategic Minerals Planning

With rising border tensions in Kashmir and Ladakh, India’s nuclear energy program has become more critical than ever. Consequently, Afghanistan’s undeveloped uranium reserves in its southern and central regions are increasingly factored into India’s strategic minerals planning.

If stability improves, India might pursue discounted uranium supply deals with Taliban authorities. This would offer a valuable alternative to India’s current suppliers, such as Kazakhstan and Namibia.

Geopolitical Leverage: Countering Pakistan’s Influence

Renewed India-Afghanistan mineral ties could significantly undercut Pakistan’s influence in southern Afghanistan. For instance, regions like Kandahar and Ghazni, where India previously led development projects, could once again become geostrategic anchors.

As a result, deeper Indian engagement could weaken Islamabad’s historical sway over Pashtun areas. Moreover, it may open new trade and transit routes beneficial to India and the region.

Global Players and Afghanistan’s Resource Diplomacy

Several countries have vested interests in Afghanistan’s resources:

Who Might Answer Afghanistan’s Call—and Why?

• India: For lithium, uranium, and geopolitical leverage

• China: To dominate the lithium supply for the EV sector

• Russia: To strengthen energy presence in Central Asia

• Iran: For transit corridor influence

• Pakistan: To maintain regional influence despite Taliban unpredictability

Conclusion: India’s Evolving Resource Diplomacy

Afghanistan’s mineral wealth—iron, lithium, and uranium—offers India a rare opportunity to reshape regional power dynamics. Without formally recognising the Taliban regime, New Delhi can pursue economic re-entry, advance its strategic minerals policy, and counter China’s growing foothold.

Ultimately, the coming years will test whether India’s discreet mineral diplomacy, spanning from Hajigak iron ore to lithium reserves, can successfully balance its democratic values and national security interests.

Afghanistan’s mineral wealth—iron, lithium, and uranium—offers India a rare chance to reshape regional power dynamics. Without recognising the Taliban regime, New Delhi can pursue economic re-entry, advance its strategic minerals policy, and counter China’s growing foothold.

The coming years will test whether India’s quiet mineral diplomacy, spanning from Hajigak to lithium resources, can coexist with its democratic principles and security interests.

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