The SAIL-led consortium that bagged mining rights for three iron ore mines at Hajigak will sign the final agreement with the Afghanistan government soon, a top official said.
“We are in the process of finalising the documentation and will soon be in a position to finalise and sign the document,” SAIL Chairman Mr C S Verma told PTI.
The final agreement will entitle SAIL-led consortium Afisco (Afghan Iron and Steel Consortium) to explore, develop and exploit the Hajigak deposits.
Mr Verma said the consortium had sent a team to negotiate the agreement and the first round of discussions has taken place. The team recently returned to India after successful negotiations.
Aifsco, which had in November last year bagged the mining rights for the three blocks, plans to invest $10.8 billion over 8-10 years to develop the mines as well as set up a 6.12 million tonnes per annum steel plant and a 800-MW power plant.
As part of the necessary internal infrastructural support, the consortium plans to build 200 km each of rail, road and transmission lines for the mine and steel project.
The three iron ore blocks hold an estimated 1.28 billion tonnes of high-grade iron ore reserves.
SAIL has the maximum 20 per cent stake in Aifsco, while NMDC and RINL each hold a stake of 18 per cent. Private players JSW Steel and JSPL hold 16 per cent each, while JSW Ispat and Monnet Ispat & Energy hold 8 per cent and 4 per cent, respectively.