The SAIL led consortium that bagged mining rights for three iron ore mines at Hajigak will sign the final agreement with the Afghanistan government soon.

Mr CS Verma chairman of SAIL said that "We are in the process of finalizing the documentation and will soon be in a position to finalize and sign the document.”

The final agreement will entitle SAIL led consortium Afisco ( Afghan Iron and Steel Consortium) to explore, develop and exploit the Hajigak deposits.

Mr Verma said the consortium had sent a team to negotiate the agreement and the first round of discussions has taken place. The team recently returned to India after successful negotiations.

Aifsco, which had in November last year bagged the mining rights for the three blocks, plans to invest USD 10.8 billion over 8 to 10 years to develop the mines as well as set up a 6.12 million tonnes per annum steel plant and a 800 MW power plant.

As part of the necessary internal infrastructural support, the consortium plans to build 200 km each of rail, road and transmission lines for the mine and steel project.

The three iron ore blocks hold an estimated 1.28 billion tonnes of high grade iron ore reserves.

SAIL has the maximum 20% stake in Aifsco, while NMDC and RINL each hold a stake of 18%. Private players JSW Steel and JSPL hold 16% each, while JSW Ispat and Monnet Ispat & Energy hold 8% and 4% respectively.

(Sourced from ET)