The total development cost of the Hajigak project in Afghanistan will be around $2 billion, including the cost of building infrastructure.
The Chairman and Managing Director of a public sector enterprise, which is a partner in the fourteen-entity consortium, told Business Line that at present the group was focusing on mining and building the necessary logistics infrastructure.
India's SAIL-led consortium of state-run RINL, NMDC and private players such as JSW Steel, JSW Ispat, Jindal Steel and Power Ltd and Monnet Ispat has bagged the development and mining rights for three blocks of the Hajigak deposits, which were offered by the Afghanistan Government. The terms of the deal are unclear at present .
Sources in the consortium said the initial plan was to transport the ore to a third country and not bring it to India. “There are three possible and viable routes for the proposed transportation. The ore can be directly sent across China through an eastern roadway. The other possible alternatives are dispatches through Iran and Pakistan.”
Opportunity
The Hajigak deposits will open up opportunities for Indian steel makers , but the move is fraught with challenges relating to geo-political security, infrastructure, logistics and human resources in the land-locked country. The assets, however, might prove cheaper in terms of commercial exploitation.
The CMD of another public sector enterprise said there was a road link that connected Afghanistan with China. “Improving that would be more cost effective than transporting ore through the sea route.” “It is a good way forward for the Indian companies to pool their resources and tap the opportunity,” said Mr Manish Pande, Regional Director, CRU Strategies.
Terming the development as positive, Mr Sandeep Jajodia, Managing Director, Monnet Ispat, expressed confidence that security related issues would be sorted out.