Summary of contract of chromites of Gadakhil of Kohisafi district of Parwan province

In accordance with the Mineral Laws, the Ministry of Mines has  tendered the processes of  exploration and exploitation of Chromites of Gadakhil area of Khoi Safi district of Parwan  province.
The following companies participated in tender process:

  1. Afghan Metal Group of Companies
  2. Zandran Group of Companies
  3. Amir Ahamd Construction Company
  4. Hewad Brothers Mining Company

Proposals of participated companies have evaluated through a transparent tender process by the commission of MoM with review of the representatives from Inter Ministerial Commission for Mines (IMCM).  In this tender process Hewad Brothers Mining Company (HBMC) selected as Winner Company, and, according to the approval of IMCM, the contract was signed between MoM and HBMC on May 18, 2010.

Major points of the Contract:
This contract will be valid for 18 years; first 3 years dedicated for prospecting and exploration, and remained 15 years for farther exploitation and extraction process.

Company is investing US$ 10 million at the beginning, and then US$ 30 million on chromites deposit.  HBMC also promised to observe environment protection, social matters of deposit, and, health and safety of workers of the mine.

HBMC is constructing a road from chromites deposit to main road, and, is to establish a plant for development of chromites up to 60% inside the Afghanistan. The annual production of exploitation of chromites will be 150-250 tons.

The company is pay 26% royalties to the government on updated rate.

HBMC is investing 2 million dollars for social services for the residents of the area and workers of the deposit.

The company is to adopt a training program for skill building of Afghan personnel during the term of contract.

This contract is the first step towards the creation of industry for development of chromites inside the Afghanistan.