OUR BUREAU, THE HINDU BUSINESS LINE
KOLKATA, DEC. 5:
Afghan Iron and Steel Co Ltd (Afisco), the Indian alliance selected for Hajigak iron ore deposit exploration, is likely to finalise the $10.8-billion concession deal in a fortnight.
Wahidullah Shahrani, Minister of Mines of the Islamic Republic of Afghanistan, said the negotiations after the selection were almost over and the deal would be given a final shape by the middle of this month.
“The deal could be formally signed in January,” the Afghan Minister said. He was here to attend the 11th Global Mining Summit, organised by CII and the Union Ministry of Mines.
The Indian alliance of three state-owned and four private steel companies had bagged the three Hajigak blocks in Bamiyan province of Afghanistan (estimated reserves of 1.28 billion tonnes of high-grade magnetite) in November last year.
An MoU was signed in April, after which Afisco has been in negotiations with Afghan Government officials.
The Afghan Minister said that later this month an Afisco team would visit Kabul. The SAIL-led consortium has NMDC, RINL, JSW, JSW Ispat, JSPL and Monnet Ispat as members.
“This is the largest overseas investment in the Afghan mining sector. We took time to sort out the issues for the strategically important agreement,” the Minister said.
The key issues were identifying coking coal, thermal coal and flux assets for feeding the proposed 6.12-mpta steel plant and an 800-MW power unit.
Negotiators also had to handle issues such as security, evacuation strategy, rail and road infrastructure as also apportionment of quantum between exports and domestic use.
The Afghan Minister said the negotiators considered Afisco’s option to use the 700-km rail link being built by a Chinese firm to Uzbekistan border for evacuation. “This would give access to Chinese and Central Asian markets,” the Minister said.
KOLKATA, DEC. 5:
Afghan Iron and Steel Co Ltd (Afisco), the Indian alliance selected for Hajigak iron ore deposit exploration, is likely to finalise the $10.8-billion concession deal in a fortnight.
Wahidullah Shahrani, Minister of Mines of the Islamic Republic of Afghanistan, said the negotiations after the selection were almost over and the deal would be given a final shape by the middle of this month.
“The deal could be formally signed in January,” the Afghan Minister said. He was here to attend the 11th Global Mining Summit, organised by CII and the Union Ministry of Mines.
The Indian alliance of three state-owned and four private steel companies had bagged the three Hajigak blocks in Bamiyan province of Afghanistan (estimated reserves of 1.28 billion tonnes of high-grade magnetite) in November last year.
An MoU was signed in April, after which Afisco has been in negotiations with Afghan Government officials.
The Afghan Minister said that later this month an Afisco team would visit Kabul. The SAIL-led consortium has NMDC, RINL, JSW, JSW Ispat, JSPL and Monnet Ispat as members.
“This is the largest overseas investment in the Afghan mining sector. We took time to sort out the issues for the strategically important agreement,” the Minister said.
The key issues were identifying coking coal, thermal coal and flux assets for feeding the proposed 6.12-mpta steel plant and an 800-MW power unit.
Negotiators also had to handle issues such as security, evacuation strategy, rail and road infrastructure as also apportionment of quantum between exports and domestic use.
The Afghan Minister said the negotiators considered Afisco’s option to use the 700-km rail link being built by a Chinese firm to Uzbekistan border for evacuation. “This would give access to Chinese and Central Asian markets,” the Minister said.
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