Two consortiums led by SAIL, NMDC may bid for Afghan mine

Fifteen Indian steel and mining companies, shortlisted by the Afghan government for grant of mining licences at Hajigak, are likely to form two consortiums --led by SAIL and NMDC-- for bidding.

"A couple of consortiums could be formed for bidding of the Hajigak mine. It will ensure higher chance of getting the mine to India. One consortium is likely to be led by SAIL and the other by NMDC," a source present at the meeting to PTI.

The yet-to-be firmed up decision was taken at a meeting among the shortlisted candidates at SAIL's headquarters here at the invitation of the PSU steel major.

When contacted SAIL Chairman CS Verma said that the PSU would like to have a maximum of five major firms into its fold for bidding the Hajigak mine.

Hajigak has an estimated 1.8 billion tonnes of high quality magnetite with 62-63% iron (Fe) content. SAIL and NMDC are among the companies from India shortlisted by the Afghanistan Ministry of Mines for grant of mining licences.

However, though many Indian firms are more interested in mining of ore and its evacuation, it is learnt that SAIL is keen to set up a steel plant in Afghanistan, subject to the condition that the host country provides infrastructural support and raw material sources.

The Afghanistan government has already hinted preference for companies, which would offer development plans from mining of iron ore to vertically integrated processes, including making of steel.

Verma has already deliberated upon its plan with Afghan Minister for Mines Wahidullah Shahrani during the latter's recent visit to India.

At the meeting, the Indian contenders also discussed their major concerns and identified the issues for discussion with the Afghan and Indian governments.

"Among the main concerns are security issues,inhospitable terrain, lack of infrastructure and skilled manpower," SAIL said in a statement.

Also, issues such as local laws, tender terms and conditions, infrastructure development, evacuation of ore, diplomatic challenges were discussed in detail, it said.

The Hajigak iron ore deposits are located in mountainous Bamiyan province, 130 km west of Kabul. Surveys by Russian geologists in the 1960s indicated that the ore deposit spreads are amenable to open pit mining methods.