Indian firms to renegotiate $10.8 bn iron ore deal in Afghanistan

Indian consortium is led by Steel Authority of India

A consortium of Indian companies led by Steel Authority of India are seeking to renegotiate the terms of an iron ore deal in Afghanistan worth up to $10.8 billion, a senior official at the Ministry of Mines told Reuters on Tuesday.

"The negotiations are suspended for some reasons ... (but) They haven't withdrawn from this process," the official said, asking for his name to be withheld because he is not authorised to speak to the media.

Investment in the country's mining sector is considered one of Afghanistan's greatest hopes of attaining economic independence and the halt will add to concern that it will not be able to support itself economically as aid flows shrink.