India to spend $11 billion investment in Afghanistan mines

[Maulik]

Wed, Nov 30 03:56 AM EST
* Consortium plans to build 6 mln T steel plant in Afghanistan
* Was awarded rights to develop three blocks of huge Hajigak mines
* Steel plant to cost $7 bln-$7.5 bln-SAIL chair (Adds details)NEW DELHI, Nov 30 (Reuters) - A consortium of Indian companies led by Steel Authority of India will need a total investment of $11 billion in a planned steel plant and to develop iron ore mines in Afghanistan, the steelmaker's chairman said on Wednesday.The Afghan government awarded the rights to develop three blocks of the huge Hajigak iron ore concession in central Afghanistan to the consortium, while a fourth block at the deposit was won by Canada's Kilo Goldmines Ltd.The Indian consortium plans to build a steel plant in Afghanistan with an annual capacity of 6 million tonnes, SAIL Chairman C.S. Verma told reporters in New Delhi, adding the plant would need investment of $7 billion to $7.5 billion and the remainder would be for developing the mines.State-run SAIL is the biggest steelmaker in India, with an annual capacity of about 15 million tonnes.The other members of the consortium are: state-run miner NMDC Ltd and steelmaker Rashtriya Ispat Nigam Ltd (RINL), and private sector steelmakers JSW Steel Ltd, JSW Ispat Steel Ltd, Jindal Steel & Power Ltd and Monnet Ispat & EnergyLtd."We'll need to borrow some from financial institutions. We'll need some facilities and assistance from both the Indian and Afghan governments," Verma said.The Hajigak deposit contains an estimated 1.8 billion tonnes of ore, with an iron concentration of 64 percent, the Afghan mines ministry has said. The figures are based on a survey carried out in the 1960s.The huge investment necessary to develop Hajigak will be welcomed by the cash-strapped Afghan government, but the deal could cause problems with neighbouring Pakistan, which fears closer cooperation between India and Afghanistan.The United Nations said this year violence across Afghanistan is at its worst since the Taliban regime was toppled 10 years ago, although the NATO-led alliance of foreign troops says attacks on its forces by insurgents are now falling.

[Maulik]

SAIL-led group plans $11 b investment in Afghan mines


New Delhi, Nov 30:
The SAIL-led consortium, which has won the bid for Hajigak iron ore mines in Afghanistan, may have to invest a total of about $11 billion in developing the project over the next eight to 10 years.
The consortium proposes to set up a 6 million tonne per annum steel plant in two phases of 3 mpta each with an investment of $7-7.5 billion, said the SAIL Chairman, Mr C.S. Verma.
It also proposes to set up a 1,000-MW power plant and a road-rail link of about 200 km from the mines to the plant site besides developing the required infrastructure.
“The steel plant will materialise only if the Afghanistan Government provides us linkages for coking coal and limestone,” Mr Verma said.
In the immediate future, the consortium proposes to invest $75 million (Rs 386 crore) to carry out exploration and geological studies of the 1.28 billion tonne deposits over the next three years, he said.
The consortium consists of public sector companies led by SAIL, NMDC and RINL, whereas the private sector players include JSW Steel, JSW Ispat, Jindal Steel and Power Ltd and Monnet Ispat and Energy Ltd.
Mr Verma said the management set-up of the consortium would be finalised over the next week after discussing with the other members, who are expected to contribute in proportion to their shareholding for the initial investment of $75 million.
“As Afghanistan is in the negative list, no international banks or lending institutions would be willing to have an exposure to the project. So we have asked for financial assistance from the Steel Ministry besides seeking sovereign guarantees from the Government of India and certain facilitation agreement from the Afghanistan Government for the project,” Mr Verma said.
He also said a grant-in-aid has to be provided by the Government for the development of the requisite infrastructure at the project.
“We will be finalising an agreement with the Government of Afghanistan on the proposed project in about a month's time,’’ the Chairman said without disclosing the financials such as royalty and upfront payment to Afghanistan.
On concerns in the war-torn country, Mr Verma said the Afghanistan Government has assured to provide security for the personnel working on the project, which may create some 8,000 direct and about 40,000 indirect jobs. The Indian companies may have to send technical workforce of about 1,000-1,500 people to execute the project, he said.

[Maulik]

SAIL-led group plans $11 b investment in Afghan mines


New Delhi, Nov 30:
The SAIL-led consortium, which has won the bid for Hajigak iron ore mines in Afghanistan, may have to invest a total of about $11 billion in developing the project over the next eight to 10 years.
The consortium proposes to set up a 6 million tonne per annum steel plant in two phases of 3 mpta each with an investment of $7-7.5 billion, said the SAIL Chairman, Mr C.S. Verma.
It also proposes to set up a 1,000-MW power plant and a road-rail link of about 200 km from the mines to the plant site besides developing the required infrastructure.
“The steel plant will materialise only if the Afghanistan Government provides us linkages for coking coal and limestone,” Mr Verma said.
In the immediate future, the consortium proposes to invest $75 million (Rs 386 crore) to carry out exploration and geological studies of the 1.28 billion tonne deposits over the next three years, he said.
The consortium consists of public sector companies led by SAIL, NMDC and RINL, whereas the private sector players include JSW Steel, JSW Ispat, Jindal Steel and Power Ltd and Monnet Ispat and Energy Ltd.
Mr Verma said the management set-up of the consortium would be finalised over the next week after discussing with the other members, who are expected to contribute in proportion to their shareholding for the initial investment of $75 million.
“As Afghanistan is in the negative list, no international banks or lending institutions would be willing to have an exposure to the project. So we have asked for financial assistance from the Steel Ministry besides seeking sovereign guarantees from the Government of India and certain facilitation agreement from the Afghanistan Government for the project,” Mr Verma said.
He also said a grant-in-aid has to be provided by the Government for the development of the requisite infrastructure at the project.
“We will be finalising an agreement with the Government of Afghanistan on the proposed project in about a month's time,’’ the Chairman said without disclosing the financials such as royalty and upfront payment to Afghanistan.
On concerns in the war-torn country, Mr Verma said the Afghanistan Government has assured to provide security for the personnel working on the project, which may create some 8,000 direct and about 40,000 indirect jobs. The Indian companies may have to send technical workforce of about 1,000-1,500 people to execute the project, he said.

[Maulik]

SAIL led consortium mulls $11 billion investment in Afghan mines

teel Authority of India (SAIL) led seven-member consortium, after winning the bid for Hajigak iron ore mines in Afghanistan, is mulling an investment aggregating to worth of about $11 billion for the development of the project over the next 8 to 10 years. The consortium proposes to set up a 6 million tonne per annum steel plant in two phases of 3 mpta each with an investment of $7-7.5 billion. However, the steel plant will only materialize if the Afghanistan Government provides the company with linkages for coking coal and limestone.Also, since the Afghanistan is in the negative list, no international banks or lending institutions would be willing to have an exposure to the project. Hence, the company will be seeking financial assistance from Steel Ministry besides requesting for sovereign guarantees from the Government of India and certain facilitation agreement from the Afghanistan Government.
For the immediate future, the consortium proposes to invest $75 million (Rs 386 crore) to carry out exploration and geological studies of the 1.28 billion tonne deposits over the next three years. However, the management set-up of the consortium would be finalized over the next week after discussing with the other members, who are expected to contribute in proportion to their shareholding for the initial investment of $75 million. The consortium, which is led by public sector companies SAIL, NMDC and RINL, also consists of private sector players include JSW Steel, JSW Ispat, Jindal Steel and Power and Monnet Ispat and Energy.
In additional development, the company besides developing the required infrastructure also proposes to set up a 1,000-MW power plant and a road-rail link of about 200 km from the mines to the plant site.
DISCLAIMER: Accord Fintech provides the Content on “AS IS” basis without any express or implied warranties. Accord Fintech does not warrant the accuracy, timeliness, completeness, adequacy, merchantability, or fitness for a particular purpose of the Content, and Accord Fintech shall not be liable to Licensee or to any third party with respect to any actual or alleged inaccuracy, untimeliness, incompleteness, inadequacy, unmerchantbailty or unfitness.

[Maulik]

SAIL led consortium mulls $11 billion investment in Afghan mines

teel Authority of India (SAIL) led seven-member consortium, after winning the bid for Hajigak iron ore mines in Afghanistan, is mulling an investment aggregating to worth of about $11 billion for the development of the project over the next 8 to 10 years. The consortium proposes to set up a 6 million tonne per annum steel plant in two phases of 3 mpta each with an investment of $7-7.5 billion. However, the steel plant will only materialize if the Afghanistan Government provides the company with linkages for coking coal and limestone.Also, since the Afghanistan is in the negative list, no international banks or lending institutions would be willing to have an exposure to the project. Hence, the company will be seeking financial assistance from Steel Ministry besides requesting for sovereign guarantees from the Government of India and certain facilitation agreement from the Afghanistan Government.
For the immediate future, the consortium proposes to invest $75 million (Rs 386 crore) to carry out exploration and geological studies of the 1.28 billion tonne deposits over the next three years. However, the management set-up of the consortium would be finalized over the next week after discussing with the other members, who are expected to contribute in proportion to their shareholding for the initial investment of $75 million. The consortium, which is led by public sector companies SAIL, NMDC and RINL, also consists of private sector players include JSW Steel, JSW Ispat, Jindal Steel and Power and Monnet Ispat and Energy.
In additional development, the company besides developing the required infrastructure also proposes to set up a 1,000-MW power plant and a road-rail link of about 200 km from the mines to the plant site.
DISCLAIMER: Accord Fintech provides the Content on “AS IS” basis without any express or implied warranties. Accord Fintech does not warrant the accuracy, timeliness, completeness, adequacy, merchantability, or fitness for a particular purpose of the Content, and Accord Fintech shall not be liable to Licensee or to any third party with respect to any actual or alleged inaccuracy, untimeliness, incompleteness, inadequacy, unmerchantbailty or unfitness.

[Maulik]

India consortium may invest $11 billion in mining in Afghanistan


NEW DELHI (Commodity Online): An Indian consortium led by leading government-owned Steel maker, SAIL, plans to construct infrastructure in Afghanistan for mining sites and also plans to setup 6 million ton per annum (mtpa) steel plant and 1,000 MW thermal power plant.

The SAIL- led consortium was awarded the rights to mine three Iron Ore mines in Hajigak in Afghanistan, may invest $11 billion on the entire project.

According to C S Verma, Steel Authority of India Chairman, the establishment of the steel plant would be depend on the availablity of other inputs like coking Coal etc, reported PTI

The company has planned to conduct geological study of the mines over a three-year period at an investment of USD 75 million.

The consortium has already asked the Indian government to allocate funds for the venture in Afghanistan.

[Insaaf_انصاف]

Thank you great india

[graveyardofempires]

get the hell out of my country,and take your bollywood culture with you.

Thank you for understanding.

btw you lost 10 billion

[ComradePashtun]

Did my prediction come true Maulik? Congrats to India and Afghanistan alike..

[AFG21]

get the hell out of my country,and take your bollywood culture with you.

Thank you for understanding.

btw you lost 10 billion

You are not even Afghan, it is not your country.
So stop claiming what is not yours

[graveyardofempires]

You are not even Afghan, it is not your country
So stop claiming what is not yours

wow
littlt tough kid.

[randolph85]

among our neighbors, india and china matter. they will be the 2 largest economies in the world by 2050. the old order is getting weaker and having these entities invested in afghanistan is good for the country.

[Insaaf_انصاف]

get the hell out of my country,and take your bollywood culture with you.

Thank you for understanding.

btw you lost 10 billion

Have some respect for Afghanistan's true alliance against our ennemy .... Pakistan

Ishallah
Afghanistan + India = End of Pakistan

[AFG21]

wow
littlt tough kid.

I know the truth is hard to handel, specilay for peopel that are brainwashed like you.