Corruption

Greed, Corruption and Danger: A Tarnished Afghan Gem Trade

The local people called the militia’s takeover of the giant lapis mine in northeastern Badakhshan Province a white coup — easy and bloodless. Perhaps, but the seizure has become a lesson in how the lack of accountability and rule of law in Afghanistan can turn bounty into ruin.

Riding waves of excitement after a 2010 report by the United States military that Afghanistan’s mineral wealth could be worth as much as $1 trillion, the Lajwardeen Mining Company won a 15-year contract in 2013 to extract lapis lazuli in Badakhshan. For thousands of years, Afghanistan has been one of the chief sources of lapis lazuli, a prized blue gemstone associated with love and purity and admired by poets as well as jewelers.

Valued at about $125 million a year in 2014, the lapis trade had the potential to be worth at least double that, and Lajwardeen, owned by an Afghan family in the import-export business for three generations, saw a great opportunity.