In Commodity News 26/05/2015
India has dismissed reports that an Indian consortium has scrapped a multi-billion dollar iron-ore mining deal in Afghanistan, saying only an analysis of the proposed project’s opportunities and strengths had been done.
Media reports had stated that after developing cold feet over the proposed USD 10.8 billion steel Hajigak iron ore mine project in Bamiyan province, conceived in November 2011, the SAIL-led consortium of leading Indian steelmakers has now decided to scrap the project altogether.
Dismissing the reports, India’s Ambassador to Afghanistan Amar Sinha tweeted, “Not correct. Meeting only did a SWOT analysis of opportunities and strengths. No decision of this sort.”
The Hajigak mine is expected to be one of the largest economic projects in Afghanistan.
After winning bids for three iron ore mines at Hajigak in the war-torn Afghanistan in November 2011, the Indian consortium AFISCO had then said that it would invest USD 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.
