The Indian companies interested in Afghanistan's Hajigak iron ore deposits met on Thursday to address their major concerns and identify the issues needed to be discussed with the Afghan and Indian Governments.

The meeting of 15 such companies was held at the corporate headquarters of Steel Authority of India Ltd (SAIL) in the Capital. These are among the 22 companies shortlisted by the Afghanistan Ministry of Mines for grant of mining licenses at Hajigak. These deposits carry an estimated 1.8 billion tonnes of high quality magnetite with 62-63 per cent iron content.

“Among the main concerns are security issues, inhospitable terrain, lack of infrastructure and skilled manpower, etc. Issues such as local laws, tender terms and conditions, infrastructure development, evacuation of ore, diplomatic challenges – were discussed in detail. The possibility of forming consortiums to bid for the mining licences was also deliberated upon,” said a statement from the public sector steelmaker.

While the other companies are more interested in mining of ore and its evacuation, SAIL is keen to set up a steel plant in Afghanistan, subject to the condition that the host country provides infrastructural support and raw material sources, it said.

The SAIL Chairman, Mr C.S. Verma, has already held discussions with the Afghan Minister for Mines, Mr Wahidullah Shahrani, in this regard during the latter's recent visit to India.

The Hajigak iron ore deposits are located in the mountainous Bamiyan province, 130 km west of Kabul.

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