Hajigak iron ore mines: FPCCI underscores need for carrying out study on demand-supply potential

KARACHI: Identifying the enormous untapped potential of Afghanistan’s Hajigak iron mines, Mian Nasser Hyatt Maggo, President FPCCI, has proposed to the Government of Pakistan that a detailed feasibility study should be conducted to assess a cost-effective and long-term iron ore supplies potential for Pakistan’s steel industry; which is bound to expand at a rapid pace given the increasing home consumption of steel.

He said that Pakistan can greatly benefit from the next-door supplies for the decades to come; and, prima-facie, it is a multi-billion dollar geo-economic prospect to be cost competitive.

Maggo said that no other country enjoys the land-based route as shortest as Pakistan – as Hajigak and Peshawar are only 400 kilometres apart; which substantially adds to its geo-economically rewarding value and will help to upkeep Pakistan’s economic security.

However, Engr. M.A. Jabbar said that Prime Minister Imran Khan’s vision for low-cost affordable housing for every household; coupled with skyrocketing steel prices warrants an immediate need to secure iron ore supplies for the country from Afghanistan for Pakistan Steel Mills and future expansion of steel industry.

He said that the iron ore from Afghanistan will change the cost matrix of locally manufactured steel; which has remained dependent on higher logistic costs than the material themselves while importing from countries like Australia, Canada, South Africa, etc.

Sustainable Policy Development Institute (SDPI)’s researcher Engr. Arshad H. Abbasi has also recommended to have a detailed look at the Hajigak mines and its potential benefits to Pakistan; in which he has been involved to work out the matrix for development of feasibility.

Engr. M.A. Jabbar has recommended that Pakistan should take the lead and sign a MoU with the Afghan government before any other regional or sub-regional country gets the first-mover’s-advantage to explore the iron ore reserves on a large-scale.

He added that it is pertinent to note that the mines may contain up to 2,100 million metric tons and more of high-grade (61-69%) iron ore and reportedly translates into $450 billion in today’s market. This effectively makes Hajigak mines, the largest in Asia, and makes Afghanistan one of the top-ten countries in terms of iron reserves.

Mian Nasser Hyatt Maggo further said that this long-term mining and import arrangement with Afghanistan will be a win-win mechanism for Pakistan and Afghanistan in the true sense. as it will create a sustainable stream of income for the resource-restrained brotherly neighbour and create thousands of jobs there.

Maggo explained that tapping Hajigak’s iron at a competitive price may soon be proven to be a lease of life for the defunct Pakistan Steel Mills and expansion of steel industry in Pakistan. It has the potential to mass produce steel products for Pakistan’s booming housing and real-estate sectors.

This can turnaround the cost competitiveness-oriented production by Pakistan Steels Mills and more to be followed once the study is commissioned to save tens of billions of rupees or otherwise charged on higher cost import based Iron Ore with higher cost logistics, he added.

Copyright Business Recorder, 2022