Indian consortium confirms bid for Afghan iron ore

An Indian consortium comprising three private companies and three public organisations, led by the Steel Authority of India (SAIL), is to submit a formal bid for the Hajigak iron-ore mine in central Afghanistan. The concession contains an ore reserve of around 1,800Mt of magnetite with 62-63% Fe.

According to International News Services Ltd, India's National Mineral Development Corp (NMDC) and Rashtriya Ispat Nigam are the two other public-sector companies.

The names of the three private companies have not been disclosed officially, and the companies themselves refuse to confirm participation, but a senior official at SAIL told Mining Journal they are Tata Steel, Jindal Steel and Power (JSPL) and JSW Steel.

According to the official, the consortium wants to use the ore to feed a steel plant in Afghanistan, albeit subject to availability of coking coal, utilities, infrastructure and other support from the Afghanistan government. However, export of ore has not been ruled out. Treatment of the ore, is "part of the confidential agreements among the consortium partners, and cannot be made public as of now", according to the officiel.

In a May communiqué, SAIL had said that, while other companies are more interested in the mining of ore, SAIL wants a steel plant. Nevertheless, the company admits concern over Afghanistan's security issues, Hajigak's inhospitable mountainous terrain, and the dearth of infrastructure and skilled manpower.

Concession bids will be opened on September 3 or 4. If the Indian consortium gets the rights, the public sector companies would hold a 52% stake while the remainder would be held by the private companies.

Representatives of 15 Indian steel and mining companies had visited Afghanistan earlier this year to inspect the 16 Hajigak iron-ore deposits, which lie 130km west of Kabul in Bamiyan province. They are amenable to open-pit mining.