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Indian Consortium Considers Scrapping $10 Billion Mining Contract
Saturday, 23 May 2015 18:27
Last Updated on Sunday, 24 May 2015 16:59
Written by Zabiullah Jahanmal
Indian media reported this week that members of a consortium with a pending contract to develop the Hajigak iron mine are thinking about scrapping their planned $10 billion USD project.
Based on these reports, published in the Indian Financial Express, the Indian consortium cited insecurity as its biggest challenge in Afghanistan, along with delays and an unreliable partner in the form of the Afghan government.
"The slow work of the Ministry of Mines has caused the Indians to pass on the investment in the Hajigak iron mine," said Ramazan Juma Zada, a member of the Wolesi Jirga's Economic Commission.
However, reports also suggest the mining contract was scrapped in part because of a recent agreement signed between Afghanistan's National Directorate of Security (NDS) and Pakistan's Intelligence Services (ISI). The deal has been called "uneconomical" by Indian commentators.
"The closeness of the Afghan government to Pakistan has raised concerns of Indian traders, which has forced them to make this decision," Kabul University economics professor Haseebullah Mowhed said. "On the one hand it's good that it got canceled as the agreement was not clear but it is also a loss that we have lost the investment."
Officials at the Ministry of Mines and Petroleum declined to comment.
The Hajigak mine is expected to be one of the largest economic projects in Afghanistan in the coming years. It was handed over to an Indian consortium four years ago. The idea was that the consortium build a power plant station and a large steel manufacturing company around the mine.
*Indians are playing hardball.
"Back off from getting too close to Pakistan, or we will take action".
The Pakistanis of course would be delighted if this deal was scrapped due to their hatred of all things Indian, instilled to them from childhood.
[MENTION=1498]ComradePashtun[/MENTION] [MENTION=1201]Toramana[/MENTION] [MENTION=8995]DSM0305[/MENTION]
Saturday, 23 May 2015 18:27
Last Updated on Sunday, 24 May 2015 16:59
Written by Zabiullah Jahanmal
Indian media reported this week that members of a consortium with a pending contract to develop the Hajigak iron mine are thinking about scrapping their planned $10 billion USD project.
Based on these reports, published in the Indian Financial Express, the Indian consortium cited insecurity as its biggest challenge in Afghanistan, along with delays and an unreliable partner in the form of the Afghan government.
"The slow work of the Ministry of Mines has caused the Indians to pass on the investment in the Hajigak iron mine," said Ramazan Juma Zada, a member of the Wolesi Jirga's Economic Commission.
However, reports also suggest the mining contract was scrapped in part because of a recent agreement signed between Afghanistan's National Directorate of Security (NDS) and Pakistan's Intelligence Services (ISI). The deal has been called "uneconomical" by Indian commentators.
"The closeness of the Afghan government to Pakistan has raised concerns of Indian traders, which has forced them to make this decision," Kabul University economics professor Haseebullah Mowhed said. "On the one hand it's good that it got canceled as the agreement was not clear but it is also a loss that we have lost the investment."
Officials at the Ministry of Mines and Petroleum declined to comment.
The Hajigak mine is expected to be one of the largest economic projects in Afghanistan in the coming years. It was handed over to an Indian consortium four years ago. The idea was that the consortium build a power plant station and a large steel manufacturing company around the mine.
*Indians are playing hardball.
"Back off from getting too close to Pakistan, or we will take action".
The Pakistanis of course would be delighted if this deal was scrapped due to their hatred of all things Indian, instilled to them from childhood.
[MENTION=1498]ComradePashtun[/MENTION] [MENTION=1201]Toramana[/MENTION] [MENTION=8995]DSM0305[/MENTION]