Afghanistan Ministry of Mines Announces the Winning Bidders for the Hajigak Iron Ore Project Tender

28 November 2011.

The Ministry of Mines of Afghanistan has announced the winning bidders for the mining rights of the four license blocks at the Hajigak Iron Ore Deposit. The AFISCO consortium (Afghan Iron & Steel Consortium) which comprises of Steel Authority India Ltd (SAIL), National Mineral Development Corporation (NMDC), Monnet Ispat and Energy Ltd, Rashtriya Ispat Nigam Ltd, JSW Steel Ltd, Jindal Steel Power Ltd, JSW Ispat Steel Ltd has been awarded 3 Blocks (Blocks B, C, and D) and Kilo Gold Company was awarded Block A in the tender. 

Kilo Gold Company brings with it the successful Canadian model of exploration and development with an exceptionally experienced team of directors and development partners.  Through the experience gained in its other resource developments and its Hajigak project partners, the Kilo Operation will operate within the world’s best safety, environment, and sustainable practices helping lead Afghanistan through the process of industrial development.

AFISCO brings a tremendous array of expertise; technical, financial and physical resources; mining and steel production experience developed over more than 100 years in India and internationally.  In their bid, the Consortium have proposed setting up of mines and steel plant as well as proposed the possible benefits to the people and country of Afghanistan as a whole, and have also committed to environmentally and socially responsible operations.

The development of the Hajigak Iron by Kilo and AFISCO is expected to bring billions of dollars in mining investment and thousands of new jobs to Afghanistan.  The companies have also pledged substantial support for railway, power, and other infrastructure development within the country, as well as major support for education and training programs.

The Hajigak iron ore deposit is situated in the mountainous Bamyan province, 130 km. west of the Afghanistan capital of Kabul.  It is one of several large iron deposits within Afghanistan, and is the largest unmined iron deposit in Asia -- both in terms of quantity and quality.  A study in the 1960's demonstrated the mineral potential of the region, and estimated the Hajigak resource as 1.8 billion tonnes of iron ore with a concentration of approximately 64 % Fe.  The presence of coking coal nearby at Shabashak, and the world-class ranking of the iron ore resource combine to make the Hajigak deposit an exceptionally favorable target for economic development.

H.E. Minister Shahrani stated: “This is a historical moment in our economy not just bringing huge investment but also an important step in developing our vast mineral resources which is the key to the sustainability of economic growth in the country”

Minister Shahrani also added that the Government of Afghanistan is fully committed to the highest degree of transparency in the tendering and awarding of every mining contract.

As per defined procedures the Government of Islamic Republic of Afghanistan will launch the contract negotiation with the winning bidders to finalize the contract details.

Please contact the Ministers Office, Afghanistan Ministry of Mines for further information.