Steel giants such as Tata, Essar and SAIL are likely to put in bids for the Hajigak mines in Afghanistan, which contain an estimated 1.8 billion tonnes of iron ore deposits, but may also form a consortium for the purpose.
The war-torn country has invited an expression of interest (EoI) to develop its mines, which it said is a part of huge proven reserves worth an estimated $3 trillion. "Major steel players like the Tatas, Essar, SAIL, Jindal and others have evinced interest in bidding for the Hajigak mines in Afghanistan. They may either bid jointly or proceed independently," Mines Secretary S Vijay Kumar said today. Another official of the Mines Ministry said around 15 firms had so far evinced interest in the project and have already initiated talks with the Afghan government.
Afghanistan has invited EoIs for multiple exploration concessions falling within the Hijigak mines, which closes on January 13. The selected bidder will be granted concessions under Afghan Mineral Law. The need to form a consortium was felt in view of the huge investment requirement for developing the mines and creation of basic infrastructure there.
Earlier, Afghan Mines Minister Wahidullah Shahrani had said a number of Indian companies, including Essar, Indian-origin ArcelorMittal, Jindals and Tatas, had showed interest in developing the assets. He had met his Indian counterpart last November. The two countries are also working toward a memorandum of understanding for collaborating in the mining sector.
