AFISCO to invest INR 375 crore for exploration at Hajigak in Afghanistan

Saturday, 07 Jan 2012

ET reported that a consortium of Indian steel companies led by Steel Authority of India Limited will invest about INR 375 crore in initial exploration for iron ore at Hajigak in Afghanistan.

The exploration will give the Indian consortium, called Afghanistan Iron & Steel Consortium, an indication of the size and grade of reserves, which were last explored in the 60s.

The outlay, which will cover exploration over two years, will be a prelude to an investment of INR 55,000 crore to develop mines, build a steel plant and create infrastructure.

A working level team from AFISCO will visit Afghanistan shortly for talks with the government on the final agreement. The Indian team will also seek the Afghan government's active role in providing road and rail infrastructure outside the mining area, in securing licensing rights and housing for project workers.

Mr CS Verma chairman of SAIL said “We will seek the Afghan government's role in providing safety and security cover to Indian personnel. Since Afghanistan is on a negative list, the security factor will weigh critically before we make any investments. It will also help when the consortium seeks funding from multilateral financial institutions.”

Mr Verma said “While road and rail links within the project area will be our responsibility, we would want the Afghan government to provide infrastructure support outside the project area up to the nearest international port.”

The consortium, which has JSW Steel, JSW Ispat, JSPL, RINL, NMDC and Monnet Ispat as the other members, will hold a separate meeting to work out the issues.

(Sourced from ET)

JSW Ispat announces change in directorate

Thursday, 03 Nov 2011

JSW ISPAT Steel Ltd has informed BSE that:

1. Mr M Sankaranarayan has resigned as director of the company with effect from October 4th 2011, consequent upon withdrawal of his nomination by UTI.

2. Ms Manju Jain ceases to be a director of the company with effect from October 10th 2011, consequent upon withdrawal of her nomination by IFCI Ltd

Indian consortium hoping to be preferred bidder

Thursday, 08 Sep 2011

The bid submitted by a consortium of Indian steel and mining companies, led by Steel Authority of India Limited, for mining concessions of the Hajigak Iron Ore Mines located near Bamiyan in Afghanistan is among the six bids opened by the ministry of mines of Islamic Republic of Afghanistan.

Structure of Indian consortium
SAIL - 20%
NMDC - 18%
RINL - 18%
JSW - 16%
JSPL - 16%
JSW Ispat - 8%
Monnet Ispat & Energy - 4%

The consortium has bid for all the four blocks at Hajigak offered by MoM, Afghanistan. Announcement of preferred and reserved bidders is expected to be made by Afghanistan on or about October 4th 2011.

As per the Request for Proposal issued by MoM, Afghanistan there will be total and annual exploration expenditure requirements over at least a three year period with annual minimums of USD 5 million or more. Bids will be evaluated on various parameters related to bidding company's credentials and benefits accruing to Afghanistan such as royalty, commitment towards corporate social responsibility, etc. Emphasis has been laid on development plans which proposes expansion from iron mine/processing facilities with transport assets to vertically integrated processes including making steel. However, the weightage assigned to individual parameters has not been disclosed by the MoM, Afghanistan.

Upon receiving the news of bid opening, Mr CS Verma chairman of SAIL said that "This is the first time that Indian public and private sector companies have come together to jointly bid for an iron ore asset abroad. With Afghanistan holding strategic interest for India, we hope that our endeavor to obtain mining licenses there will be a stepping stone towards the larger objective of contributing to the much-needed economic growth of the country. This will pave the way for more such collaborative efforts in the future by Indian companies for obtaining raw material assets in other countries."

The five other bids submitted by parties from various countries for the include ACATAC, LLC of the USA (3 blocks), Behin-Sanate Diba of Iran (4 blocks), Gol-e-Gohar Iron Ore of Iran (1 block), Kilo Goldmines Ltd. of Canada (1 block) and Corporate Ispat Alloys Ltd of India (1 block).

Ispat Industries to be renamed as JSW Ispat Steel - Report

Wednesday, 19 Jan 2011

PTI reported that the Mittal brothers, Mr Promod and Mr Vinod Mittal, the promoter directors of Ispat Industries would continue on the board even after majority interest in the company goes to JSW Steel.

BL reported that Ispat Industries Ltd is set to be renamed as JSW Ispat Steel and become a joint venture between JSW Steel and Kolkata based Mittals.

Mr Vinod Mittal on the sidelines of EGM to seek shareholders approval for allotment of 45% stake in the company to JSW Steel said “Both Promod and I would continue on the board as non executive directors.”

Mr Mittal said the board strength has gone up to 15 with induction of JSW Steel vice CMD Mr Sajjan Jindal and joint MD & CFO Mr Seshagiri Rao and two other independent directors in the company.

He said "JSW has option to increase their strength on board and it can be recasted three months later.”

Mr Anil Sureka ED of IIL said that out of the fresh equity of INR 2,157 crore infusion, around INR 600 crore would be utilized to reduce the existing debt of INR 6,500 crore till September 2011 and rest INR 5,900 crore would be refinanced.

He added that “Another INR 600 crore would be utilized to meet financing of the ongoing projects and the rest around INR 950 crore would be meant for working capital.”

(Sourced from PTI and BL)