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Consortium may finish prospecting work in 18 months

Consortium may finish prospecting work in 18 months
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The prospecting work on the three iron ore blocks in Afghanistan’s remote Hajigak region may be over within 18 months from the date of commencement of the job in the area.

The Afghanistan Iron & Steel Company (Afisco), a consortium of Indian steel companies led by Steel Authority of India (SAIL), secured the contract to mine the block from the national government last year.

The consortium plans to complete prospecting work within 18 months of starting it in the area. The consortium, includes JSW Steel, Monnet Ispat, JSPL, NMDC and RINL.

The consortium would invest $75 million on the prospecting activity in the remote terrain and it would be funded by the consortium members in proportion to their shareholding in the project.

Subject to Afghanistan government making available required linkages for coking coal and limestone, the consortium may set up a 6 million tonne steel plant in the region in two phases of 3 mn t each.

Some minor clauses would be settled between the consortium and the Afghanistan government during a final round of discussions, which is expected soon.

Recently, the proposed meeting of the consortium members with government officials on this issue was postponed owing to non-availability of some of the executives.

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