By Euan Rocha
TORONTO, March 9 (Reuters) - Afghanistan is looking to attract foreign mining companies to invest in some of the country's promising mineral deposits, while also helping build infrastructure and create jobs, the country's minister of mines, Wahidullah Shahrani, said on Tuesday.
'Our mission is to have discussions with mining officials of other countries, as well as to have discussions with global mining companies,' said Shahrani, speaking on the sidelines of the Prospectors and Developers Association (PDAC) mining convention in Toronto.
'This forum gives us the opportunity to introduce some of our mineral deposits, which we are going to tender in the next 3 to 4 months.'
Afghanistan currently relies largely on international aid to meet most of its budgetary needs, but the country is keen to capitalize on its vast reserves of mineral wealth, the minister said in an interview with Reuters.
The Ministry of Mines plans to seek tenders from companies interested in developing the Hajigak iron deposit within the next two to three months.
The deposit, with an estimated resource of well over 1 billion tonnes, is located in the mountainous Bamiyan province, about 130 km (80 miles) west of Kabul. Nearby seams of coking coal would make it possible to set up an integrated iron and steel complex at the site.
The project was opened up for tenders in early 2009, but it failed to attract interest due to the impact of the global economic slowdown, as well security related concerns.
However, Shahrani is optimistic that the project will attract significant interest this time around.
OTHER PROJECTS
China's top integrated copper producer, Jiangxi Copper Co , and Metallurgical Corp of China , are going ahead with the development of the vast Aynak copper mine, south of Kabul, after they won the contract to develop it in 2008.
Jiangxi owns 25 percent of the project and Metallurgical Corp has the other 75 percent. The two firms started construction of the $4.4 billion project in July last year and expect it to produce 320,000 tonnes of copper concentrate annually, with production slated to begin in 2013 or 2014.
Shahrani expects the Aynak project to generate annual revenue of $300 million to $400 million for the Afghan government, once it is running at full capacity.
The Hajigak project is expected to cost between $5 billion and $6 billion, said Shahrani, who expects the project to generate much more revenue than Aynak.
Shahrani said the government is not focused exclusively on the revenue stream generated from these projects, but is also keen on companies developing infrastructure and creating jobs within the country.
The country also plans to seek tenders to develop its northern oil and natural gas assets within the next three to four months, said Shahrani.
The PDAC convention, organized by the Prospectors and Developers Association of Canada, is the largest industry gathering of its kind, drawing more than 20,000 participants this year as global metals demand promises to hold steady and the world emerges from the economic downturn.
(Reporting by Euan Rocha; editing by Rob Wilson)
(euan.rocha@reuters.com; Reuters Messaging: euan.rocha.reuters.com@reuters.net; 416 941 8185)) Keywords: PDAC/AFGHANISTAN
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
TORONTO, March 9 (Reuters) - Afghanistan is looking to attract foreign mining companies to invest in some of the country's promising mineral deposits, while also helping build infrastructure and create jobs, the country's minister of mines, Wahidullah Shahrani, said on Tuesday.
'Our mission is to have discussions with mining officials of other countries, as well as to have discussions with global mining companies,' said Shahrani, speaking on the sidelines of the Prospectors and Developers Association (PDAC) mining convention in Toronto.
'This forum gives us the opportunity to introduce some of our mineral deposits, which we are going to tender in the next 3 to 4 months.'
Afghanistan currently relies largely on international aid to meet most of its budgetary needs, but the country is keen to capitalize on its vast reserves of mineral wealth, the minister said in an interview with Reuters.
The Ministry of Mines plans to seek tenders from companies interested in developing the Hajigak iron deposit within the next two to three months.
The deposit, with an estimated resource of well over 1 billion tonnes, is located in the mountainous Bamiyan province, about 130 km (80 miles) west of Kabul. Nearby seams of coking coal would make it possible to set up an integrated iron and steel complex at the site.
The project was opened up for tenders in early 2009, but it failed to attract interest due to the impact of the global economic slowdown, as well security related concerns.
However, Shahrani is optimistic that the project will attract significant interest this time around.
OTHER PROJECTS
China's top integrated copper producer, Jiangxi Copper Co , and Metallurgical Corp of China , are going ahead with the development of the vast Aynak copper mine, south of Kabul, after they won the contract to develop it in 2008.
Jiangxi owns 25 percent of the project and Metallurgical Corp has the other 75 percent. The two firms started construction of the $4.4 billion project in July last year and expect it to produce 320,000 tonnes of copper concentrate annually, with production slated to begin in 2013 or 2014.
Shahrani expects the Aynak project to generate annual revenue of $300 million to $400 million for the Afghan government, once it is running at full capacity.
The Hajigak project is expected to cost between $5 billion and $6 billion, said Shahrani, who expects the project to generate much more revenue than Aynak.
Shahrani said the government is not focused exclusively on the revenue stream generated from these projects, but is also keen on companies developing infrastructure and creating jobs within the country.
The country also plans to seek tenders to develop its northern oil and natural gas assets within the next three to four months, said Shahrani.
The PDAC convention, organized by the Prospectors and Developers Association of Canada, is the largest industry gathering of its kind, drawing more than 20,000 participants this year as global metals demand promises to hold steady and the world emerges from the economic downturn.
(Reporting by Euan Rocha; editing by Rob Wilson)
(euan.rocha@reuters.com; Reuters Messaging: euan.rocha.reuters.com@reuters.net; 416 941 8185)) Keywords: PDAC/AFGHANISTAN
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2010 AFX News
