Indian cos, Rio, BHP keen on developing Afghan mines

Afghanistan today said Indian mining companies and global majors like Rio Tinto and BHP Billiton are keen to develop the war-torn country's mineral resources, estimated at $1 trillion.

After calling on Indian Mines Minister B K Handique, visiting Afghanistan Mines Minister Wahidullah Shahrani told PTI, "Indian and global companies like Rio Tinto and BHP Billiton are keen to develop mines in Afghanistan."

Taking its plans forward, Afghanistan will launch a road show in London later this month in which 200 companies, including global majors like Rio Tinto, BHP Billiton, Vale and many Indian companies, are expected to attend.

"We will invite bids for development of mineral deposits in the country in the next few months," Shahrani said, adding that the mineral wealth in Afghanistan is valued at approximately $1 trillion.

"We have invited 200 companies, including global majors like Rio Tinto, BHP Billiton, Vale and many Indian companies, to attend the road show on June 25 in London," he said.

He sought India's assistance for exchange of know-how and expertise in the mining sector, besides help from the Geological Survey of India for mapping its resources.

"Afghanistan is rich in minerals like iron ore, copper, cobalt, chromite and the whole country is yet to be fully explored," he said.

Indian firms like Essar had earlier evinced interest to bid for iron ore mines in Afghanistan when the Afghanistan government had invited a global expression of interest (EoI) for its Hajigak iron ore mines, said to be having 1.8 billion tonnes of reserves. The country's iron ore deposits, as per reports, are estimated at between 5-6 billion tonnes.

An Essar official, however, when contacted said that the company had participated in the EoI, but did not receive any response.