KOLKATA (Commodity Online): The association of Indian companies is looking for $600 million from the government as a funding support for the development of the 1.8-billion ton Hajigak iron-ore reserves in Afghanistan.
The total investment of the development of the reserves is not yet disclosed.but according to the analysts it is estimated to be around $6-billion.
The association has also proposed setting up a 3 million tons a year steel mill linked to the Hajigak reserves.
Steel Authority of India Limited (SAIL) has sought the involvement of Prime Minister Manmohan Singh on the need of government funding, if the association wins the bid.
“The involvement of the Prime Minister’s Office was necessary so that the possibility could be explored of funds coming from the Indian government’s $2-billion corpus for developmental projects under India-Afghanistan bilateral agreements.”said senior officials of steel Ministry report Miningweekly.com.
The Association is headed by Steel Authority of India Limited (SAIL), includes NMDC Limited, the largest iron-ore miner in the country, as well as private sector steel companies.
The Indian companies are bidding for all four iron-ore reserve blocks of Hajigak, in Bamiyan province, about 130 km from Kabul.
