Afghanistan shortlists 5 Indian firms for developing Hajigak mines
04 Jul 2009
War-torn Afghanistan is now on the move to exploit its natural resources, and has shortlisted seven companies, including five Indian firms, for developing the 1.8 billion tonne Hajigak iron ore deposit.
According to a statement issued by Hafizullah Afzaly, executive officer of the project management unit at the Afghan ministry of mines, Vedanta group's Sesa Goa, Essar Minerals, Ispat Industries, JSW Steel and Rashtriya Ispat Nigam have been short listed by the government.
The other two are China's MCC and Tuwairqi Steel Mills of Pakistan.
The Indian minig giants are attracted to Afghanistan because of its high quality coal and cheap cost of exploration. Moreover, rhe proximity to Afghanistan to India will cut transport costs. However, according to some experts, security of the personnel involved in the action may be a big issue for the companies.
Last year a suicide car bomb exploded outside the Indian Embassy in central Kabul, killing at least 41 people and injuring scores of others.
However, minister Mohammad Ibrahim Adel said that the security situation has improved and urged foreign firms to invest in the sector.