Afghanistan today said many Indian corporate houses including Tatas and Jindals besides Indian origin ArcelorMittal have evinced interest in developing its Hajigak mines with an estimated reserves of 2 billion tonnes of high quality iron ore.
"The companies which are seeking information for Hajigak include Ispat, Essar, Indian-origin ArcelorMittal, Jindals and Tatas," Afghanistan Mines Minister Wahidullah Shahrani told reporters after calling on Indian Mines Minister B K Handique.
In order to attract investment in the war-torn country, Afghanistan had in September sought expression of interest (EoI) from global companies to develop Hajigak mines.
"The mines is part of huge mineral reserves in the country, which have been scientifically assessed and are valued at $3 trillion", Shahrani said.
"We will encourage Indian mining companies to mine reserves there and set up steel plants. They can mine up to 20 million tonnes per annum and they would be allowed to export because we have got huge reserves of 20 billion tonnes of iron ore," Shahrani said.
The EoI for the Hajigak mines will close in January next year and would be followed by many such tenders for the development of mineral deposits, the Afghan minister said.
The EoI, he said, will close on January 13.
The two countries are also working towards a Memorandum of Understanding for collaborating in the mining sector.
The MoU is likely to be inked within a month's time, he said.
Keen to attract more investment in the sector, Shahrani said Afghanistan would look at tendering its mineral assets and seek to rope in global companies.
"We are going to tender other mining reserve also to sustain our economic growth. Our mineral reserves worth USD 3 trillion have been scientifically ascertained", Shahrani said.
The minerals include high-grade iron ore, copper, rare earth metals like lithium, also gold and coal," he said.
Giving a time-frame for some of these bids, Shahrani said these will be undertaken for development of two major copper blocks in June-July next year.
"Bids will be invited for development of oil blocks in June next year. For Gas block, it will be in January and two gold deposits in March 2011," he said
The Afghan Minister said he had a detailed meeting with Finance Minister Pranab Mukherjee and Commerce Minister Anand Sharma and was hopeful of significant collaboration.
Asked about the proposed MoU with mines in Afghanistan Minister B K Handique said his Ministry was in the process of finalising the details for it for tie ups in the areas of capacity building, training etc.
Handique said a team of officials from India will visit Afghanistan in April next year to assess the mining possibilities in the country and Hindustan Copper CMD will be part of the team as HCL is keen on Copper mining.
