Thursday, May 30, 2024

SAIL-led consortium to renegotiate $10.8 billion Afghan iron ore deal

Immigration News

Ahmad Shah Ghanizada
Ahmad Shah Ghanizadahttps://www.khaama.com
Ahmadshah Ghanizada is the deputy editor in chief for The Khaama Press Agency who manages and overlooks the English edition.

Afghanistan iron oreAccording to reports, a consortium of the Indian companies which was awarded the extraction of iron ore in Afghanistan are seeking to renegotiate the terms of the contract with the government of Afghanistan.

A senior official in the ministry of mines has confirmed that the SAIL-led consortium is seeking to renegotiate the terms of an iron ore deal in Afghanistan worth up to $10.8 billion.

The official speaking on the condition of anonymity has told Reuters, “The negotiations are suspended for some reasons … They haven’t withdrawn from this process.”

This comes as the government of Afghanistan announced in August that negotiations with SAIL-led consortium over $10.8 billion project are almost over, and the plan will take off soon.

Afghan Iron and Steel Consortium (AIFSCO) was awarded the mining project of three iron ore mines at Hajigak by the government of Afghanistan in November 2011.

AIFSCO is comprised of public sector firms SAIL, RINL and NMDC, which is holding a combined 56 per cent stake, while other private players such as JSW, JSPL and Monnet Ispat & Energy are holding the remaining share of the iron mines.

AIFSCO following the award of the projects announced to invest $10.8 billion to set up a 6.1 mtpa steel plant in two equal phases along with a 800 MW power plant, besides creating necessary infrastructure.

However, later it decided to scale down the original plan by around 75 per cent, with consortium members deciding to set up a steel plant of 1.25 million tonne per annum (mtpa) and a 120 MW captive power plant with $2.9 billion investment, the Economic Times reported.

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1 COMMENT

  1. Is this legal? renegotiating the deal after it is finalized. I think Afghan government should cancel it and put it up for rebidding.

    Also I hope the Afghan government has strict environment controls in place although with all that corruption in place I doubt it anyone will even bother. All they have to do is just pay some dollars to the those responsible and Afghanistan is left with no Iron and lots of pollution.

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