Sunday, 21 Aug 2011
It is reported that Steel Authority of India Limited along with three public sector units and three private sector companies are to form a consortium to submit the final bid for the Hajigak iron ore mines in Afghanistan estimated to have reserves of around 1.8 billion tonnes.
This is the first time that consortium of public and private firms are teaming up to bid for a mining asset abroad.
Mr CS Verma chairman of SAIL said the three public sector units would be National Mineral Development Corporation, the Rashtriya Ispat Nigam Limited and SAIL, though he deferred naming the private companies that would bid for the mine.
Mr Verma said that "This will be a watershed event in public and private partnership.”
He preferred not to comment on the valuation of the mines, citing confidentiality clauses embedded in the deal.
The Hajigak deposits, located in the mountainous Bamiyan province, 130 kilometre West of Kabul, are among the biggest untapped reserves in the world with high quality magnetite with 63% iron content. According to reports, the Afghanistan government has estimated that the project will require investments of about USD 3 billion over a 30 year period, with the government allowing the entire output from the mines to be exported.
The Afghanistan government had recently extended the deadline for bidding to September 4 from it earlier August 2 deadlines. It has already indicated its preference for companies which would offer development plans from mining of iron ore to vertically integrated processes, including making of steel.
Besides SAIL and NMDC, other Indian companies like TATA Steel, JSW, Jindal Steel and Power, Bhushan Steel and Monnet Ispat are among the 15 Indian firms that have been shortlisted by the Afghanistan government.
(Sourced Mineweb.com)
It is reported that Steel Authority of India Limited along with three public sector units and three private sector companies are to form a consortium to submit the final bid for the Hajigak iron ore mines in Afghanistan estimated to have reserves of around 1.8 billion tonnes.
This is the first time that consortium of public and private firms are teaming up to bid for a mining asset abroad.
Mr CS Verma chairman of SAIL said the three public sector units would be National Mineral Development Corporation, the Rashtriya Ispat Nigam Limited and SAIL, though he deferred naming the private companies that would bid for the mine.
Mr Verma said that "This will be a watershed event in public and private partnership.”
He preferred not to comment on the valuation of the mines, citing confidentiality clauses embedded in the deal.
The Hajigak deposits, located in the mountainous Bamiyan province, 130 kilometre West of Kabul, are among the biggest untapped reserves in the world with high quality magnetite with 63% iron content. According to reports, the Afghanistan government has estimated that the project will require investments of about USD 3 billion over a 30 year period, with the government allowing the entire output from the mines to be exported.
The Afghanistan government had recently extended the deadline for bidding to September 4 from it earlier August 2 deadlines. It has already indicated its preference for companies which would offer development plans from mining of iron ore to vertically integrated processes, including making of steel.
Besides SAIL and NMDC, other Indian companies like TATA Steel, JSW, Jindal Steel and Power, Bhushan Steel and Monnet Ispat are among the 15 Indian firms that have been shortlisted by the Afghanistan government.
(Sourced Mineweb.com)
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