Saturday, March 15, 2014

When will SAIL-led consortium get nod for investment in Afghanistan?

STEEL-major SAIL-led consortium's proposed big investment plan for a steel mill and mine development in Hajigak, Afghanistan will be possible only after the new Mining Law is passed by the Afghan government.
According to agency report, the seven-member consortium of steel makers AFISCO, preparations for passing the new legislation by the Afghan government...
has been on for nearly six months now and is expected to be effected in a few months.
The Afghan Iron and Steel Consortium (AIFSCO), which consists of state-owned SAIL, RINL and NMDC, is holding 56 percent stake and the balance is held by private firms such as JSW, JSPL and Monnet Ispat & Energy.
Hajigak mine is the largest iron oxide deposit in the war-torn country and is located at Hajigak in Bamyan Province. It is also Asia’s biggest untapped iron ore deposits.
Inter-Ministerial Committee of Government of Afghanistan proposed to re-commence negotiations with AFISCO under terms of revised proposal indicated by consortium. The negotiations are planned after the proposed new Mining Law is passed by the Afghan government, the report said.
After winning bids for three iron ore mines at Hajigak in November 2011, AFISCO had said that it would invest $10.8 billion to set up a 6.2 mtpa steel plant in two equal phases along with a 800 MW power plant, besides creating the necessary infrastructure.
Later, the consortium scaled down the plan and said will initially invest only up to Rs 7,000 crore (about $1.14 billion) for setting up a steel plant with an annual capacity of up to 1.5 mtpa along with the infrastructure.
Scaling down the size of the investment and the steel mill warrants further negotiations and the two parties have been trying to seal that for a long time.

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