The Afghan government has awarded the rights to develop three blocks of the huge Hajigak iron ore concession in central Afghanistan to a consortium led by the Steel Authority of India, an official at the Ministry of Mines said on Monday. Policy director Abdul Jalil Jumriany said rights to a fourth block at the deposit had been won by Canada's Kilo Goldmines Ltd, which is chiefly active in Africa and has previously worked in joint venture with Rio Tinto Mining and Exploration.
"B, C and D blocks have been awarded to the Indian consortium, and block A has been awarded to the Canadians," Jumriany told Reuters. The Hajigak deposit contains an estimated 1.8 billion tonnes of iron ore, the ministry said in a statement. The AFISCO consortium of Indian steel and mining firms led by SAIL announced in September it was bidding for the Hajigak concession, which has the potential to be Afghanistan's single biggest foreign investment project. "The development of the Hajigak (project) by Kilo and AFISCO is expected to bring billions of dollars in mining investment and thousands of new jobs to Afghanistan," the Ministry of Mines said in a statement.