Afghanistan Awards Indian Group Hajigak Iron-Ore Mine Rights

[ejazr]

Afghanistan Awards Indian Group Hajigak Iron-Ore Mine Rights - Businessweek

Nov. 28 (Bloomberg) -- Afghanistan offered mining rights at the country's biggest iron deposit to an Indian government- backed group of companies and to Canada's Kilo Goldmines Ltd., the Mines Ministry said.

President Hamid Karzai and the Cabinet awarded three of four blocks at Hajigak to seven Indian steel and mining companies led by state-owned Steel Authority of India Ltd. and NMDC Ltd., said Mines Ministry policy director Abdul Jalil Jumriany. The government of Indian Prime Minister Manmohan Singh sought the contract to widen its strategic presence in Afghanistan, the stability of which it says is essential for Indian security.

Hajigak, a series of rugged mountain ridges west of Kabul that holds an estimated 1.8 billion metric tons of ore 100 kilometers (60 miles), is the biggest mining project on offer in a country that the U.S. government estimated last year holds $1 trillion in untapped minerals.

The Indian group's bid includes an offer to build a power plant and invest $1 billion in a railroad to export the ore, Jumriany said in a phone interview in Kabul. India has said it is exploring a rail line from Hajigak to the Iranian port of Chabahar.

The expansion of India's role in Afghanistan, which has included mainly construction work and development projects, is likely to upset rival Pakistan, according to analysts such as Bashir Ahmed, a senior fellow and retired army brigadier at the Institute of Regional Studies in Islamabad.

The Indian group includes state-owned Rashtriya Ispat Nigam Ltd., and private-sector companies JSW Steel Ltd., Jindal Steel & Power Ltd., Monnet Ispat Ltd. and JSW Ispat Steel Ltd.

The government awarded the fourth block at Hajigak to Kilo Goldmines Ltd., Jumriany said, and will next open negotiations with Kilo and the Indian group to finalize contracts. Unsuccessful bidders included India's Corporate Ispat Alloys Ltd. and Iran's Gol-e-Gohar Iron Ore Co. and Behin Sanate Diba Co.

 

[SHASH2K2]

SO finally India have chances to get something in return to its investments in Afghanistan. :thumb:

 

[Virendra]

Good going. Hope we don't screw this up with our typical red tape and lack of decision making, owing to Governmental inertia.
Our western neighbors may not like it. They want everything given as dowry to China

 

[agentperry]

return to investment... ahhh those economy lessons in school!!

 

[mayfair]

How will we transport the ore from there?

 

[nitesh]

How will we transport the ore from there?

The part of contract is to build a rail line, which will go towards Iran, then towards chabbar port, then it will be transported from sea

 

[agentperry]

iran in confidence is needed but the current scenario tells a gruesome story a friend is made a supporter and investor of enemy in short a potential enemy. govt should see national interests first and should work in a way that compiles by the international law( loopholes)

 

[JAISWAL]

chalo ek acchi baat to hui ..

 

[ejazr]

Commitment for social development won India mine bid in Afghanistan - Economic Times

KOLKATA/MUMBAI: The Steel Authority of India-led consortium won the bid to mine Afghanistan's largest iron ore deposit mainly because of its commitment to offer more jobs to local people and participate in social development programmes, a person familiar with the matter said.

The successful bid, steered by the state-owned steel maker, has significant geopolitical ramifications because India has been striving to counter China's growing influence in the region, especially with the US scheduled to withdraw its troops from the war-ravaged country in 2014.

The person, who did not wish to be named, told ETthat the seven-member group outbid three rivals after it promised to use iron ore from the 1.8 billion strong Hajigak deposits to build a steel plant and create jobs in the country devastated by long years of insurgency.

Afghanistan's mines ministry on Monday awarded the rights to mine three ore blocks to the consortium that also includes India's largest miner NMDC, steelmakers Rashtriya Ispat, JSW Steel, JSW Ispat, Jindal Steel & Power and Monnet Ispat. Canada's Kilo Goldmines, which had also pitched for the mines, was awarded one ore block.

"There were consortiums formed by India earlier also, but for the first time there was agreement among all members on who would negotiate with the Afghans," said Sandeep Jajodia, managing director of Monnet Ispat, a member of the consortium. "It shows that if like-minded Indian companies come together, they can compete with China also."

Heads of SAIL and NMDC met the Afghan mines minister to explain India's capability and intent to launch social development schemes, the person who did not wish to be named, said.

"Indian companies have never projected their investment in Afghanistan solely for profit motive or for extracting resources for India's benefit only," said NMDC chairman Rana Som. "The bid was presented as an endeavour for mutual benefit to generate employment and social development in Afghanistan. Indian companies will also organise training to improve employability and eventual empowerment of the local people," he said.

China, which has been very active in Afghanistan and had successfully bid for Aynak copper mines last year, stayed out of the bidding race for the 1.8 billion strong mine in Hajigak. The other bidders included companies, such as Iran's Gol-e-Gohar Iron Ore and Behin Sanate Diba Co, a consortium of 10 Iranian companies, India's Corporate Ispat Alloys and Acatco LLC.

India and China have been competing increasingly to own raw material assets across the world to feed their growing economies. China has mostly succeeded by pooling resources and skills among three or more large state-owned companies.

 

[indian_sukhoi]

How thus our Company get profit from these?

Are we gonna export those Iron ore to our Country or??