India calls reports on scrapping iron-ore mining deal in Afghanistan as baseless

 

NEW DELHI (Scrap Monster): The Indian Ambassador to Afghanistan, Amar Sinha, has declared that the media reports regarding scrapping of the multi-billion iron ore mining deal in Afghanistan are ‘baseless’. He confirmed that the meeting held recently had only analyzed the project’s potential and opportunities. Earlier media reports had suggested that the Indian consortium led by Steel Authority of India (SAIL) has backed out of the Afghanistan mining project.

 

Dismissing the media reports, Amar Shah tweeted “Not correct. Meeting only did a SWOT analysis of opportunities and strengths. No decision of this sort.’

 

Meanwhile, the project conceived in 2011 has not made further progress. The SAIL-led consortium, AFISCO had then announced that $10.8 billion will be invested towards construction of necessary infrastructure. The consortium had also promised setting up of 6.2 mtpa steel plant in two phases and an 800 MW power plant.

 

Hajigak Mine, the best known and largest iron oxide deposit in Afghanistan is located at Hajigak in Bamyan Province. It is also Asia’s biggest untapped iron ore deposits. The deposit itself stretches over 32 km and contains 16 separate zones, up to 5 km in length, 380 m wide and extending 550 m down dip, seven of which have been studied in detail. The ore occurs in both primary and oxidized states. The primary ore accounts for 80% of the deposit and consists of magnetite, pyrite and minor chalcopyrite. The remaining 20% is oxidized and consists of three hematitic ore types.