State owned mining Maharatna National Mineral Development Corporation that is leading India’s consortium to get a resource foothold in Afghanistan, is keen to bid for the 1.8 billion tonne iron ore-rich Hajigak mines, but is against setting up a steel plant given the high capital costs and presence of cheaper producers in neighboring countries.
The company recently conducted extensive talks with the Hamid Karzai government in Afghanistan ahead of the bidding for the Hajigak mines.
A high level team of NMDC recently visited the mine, located 140 km west of Kabul in the Bamiyan province. It surveyed the area for a week beginning May 6. In its tour report, the company said exporting iron ore from Hajigak offered excellent prospects to Afghanistan’s neighboring markets in the Middle East.
The report said that “NMDC should continue to show interest in participating in the development of the Hajigak deposit through the bidding process and it should simultaneously strive for acquisition through the government allocation route.”
In pre tour talks with Afghan mines minister Wahidullah Shahrani, the company pressed for direct allocation of exploratory licence to NMDC on a government to government allocation basis, but the Afghan side indicated that it could do so only if the Indian government asked for it.
On the issue of setting up a steel plant, the team recommended that in view of the high capital costs involved in setting up a steel plant and the presence of low cost integrated steel producers in neighboring countries like Kazakhstan, Ukraine and Russia, setting up such a plant could amount to blocking of NMDC’s capital.
Interestingly, state-owned steel giant SAIL is interested in setting up a steel plant there for value addition and is understood to have accordingly briefed its administrative ministry.
The company recently conducted extensive talks with the Hamid Karzai government in Afghanistan ahead of the bidding for the Hajigak mines.
A high level team of NMDC recently visited the mine, located 140 km west of Kabul in the Bamiyan province. It surveyed the area for a week beginning May 6. In its tour report, the company said exporting iron ore from Hajigak offered excellent prospects to Afghanistan’s neighboring markets in the Middle East.
The report said that “NMDC should continue to show interest in participating in the development of the Hajigak deposit through the bidding process and it should simultaneously strive for acquisition through the government allocation route.”
In pre tour talks with Afghan mines minister Wahidullah Shahrani, the company pressed for direct allocation of exploratory licence to NMDC on a government to government allocation basis, but the Afghan side indicated that it could do so only if the Indian government asked for it.
On the issue of setting up a steel plant, the team recommended that in view of the high capital costs involved in setting up a steel plant and the presence of low cost integrated steel producers in neighboring countries like Kazakhstan, Ukraine and Russia, setting up such a plant could amount to blocking of NMDC’s capital.
Interestingly, state-owned steel giant SAIL is interested in setting up a steel plant there for value addition and is understood to have accordingly briefed its administrative ministry.
(Sourced from Indian Express)
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