InfoAnda - Afghan govt reopens tender for giant iron ore mine

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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Afghan govt reopens tender for giant iron ore mine AFP - 2 hours 33 minutes ago Send IM Story Print Afghan govt reopens tender for giant iron ore mine KOTAL-E-KHERSKHAN, Afghanistan (AFP) - – The Afghan government Saturday invited bids from international mining firms to develop an iron ore deposit said to be one of the world's richest, the mines minister said. The Hajigak iron ore mine in central Afghanistan is believed to hold up to two billion tonnes of high-grade iron ore, the raw material of steel making. "The Hajigak iron ore deposit is open for tender as of today," mines minister Wahidullah Shahrani said at the site of the deposit. "We are going to tender this today in Kabul on all government websites, all leading economic and mines journals for the expression of interest," he told reporters during a visit to the mine. He said the mine would generate an annual 300 million dollars in direct earnings for the Afghan government and 1.5 billion dollars in indirect income for the country. Afghanistan invited tenders last year to develop the mine but, receiving only a lukewarm response, cancelled the process after Shahrani took over the minister's post when his predecessor was removed amid corruption allegations. Shahrani said planned to travel to New York on Wednesday, to persuade major miners to bid. He visited London earlier this year to drum up international interest in Afghanistan's mineral wealth. Shahrani said he expected the contract to be awarded by the end of 2011. Agreements were signed earlier this week on developing a cross-country railroad that would link northern gas and oil reserves to coal mines in the centre, via Hajigak, and on to the southern Ainak copper deposit, he said. This would facilitate transportation of coal to smelters at Hajigak and Ainak, he said. The mine was the central point of a massive "iron ore belt" running from the highest peaks of the Pamir mountains, near the far northeastern border with China, to the western border with Iran, he said. "According to our estimate, Hajigak could be just ten percent of the entire iron ore belt," said Shahrani, adding that the smelter project alone could generate 7,000 jobs. Hajigak was first discovered by British geologists in 1890. Specialists from the former Soviet Union did further exploration from 1965-1967, declaring the deposit at around 1.8 billion tonnes. Shahrani put potential annual output at 10 million tonnes -- giving it a potential uninterrupted lifespan of 180 years. Afghanistan is in the midst of a protracted war with Taliban-led insurgents which has intensified over the past year, with foreign-funded projects and construction workers often the target of attacks. A study earlier this year by US geologists found Afghanistan had reserves of valuable minerals, including lithium, iron, gold, niobium, mercury and cobalt, on a larger scale than previously believed, worth about a trillion dollars. The Afghan government later called this a "very conservative estimate" and put the value at up to three trillion dollars. During his June road trip to London, Shahrani vowed total transparency in the awarding of contracts to exploit the country's mineral wealth, which he said could net the war-torn country 3.5 billion dollars a year by 2015. Shahrani estimated that revenues from mineral, oil and gas reserves -- including 1.6 billion barrels of oil in the Afghan-Tajik Basin -- could wean Afghanistan off aid by 2015. The Hajigak mine is located in harsh mountain terrain about 130 kilometres (100 miles) west of Kabul and is shared by the three provinces of Parwan, Bamian and Wardak. In 2008, the Afghan government awarded a licence to develop the Aynak copper mine, in Logar province, to a Chinese consortium for about three billion dollars. Mining at the site has yet to begin. The contract obliges the Chinese partner to develop a smelter, refinery and factory as well as infrastructure such as roads, houses, hospitals and schools centred on the mine, as well as educating Afghan mining specialists. 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