KABUL: A consortium of Indian companies has won the rights to develop Afghanistan's largest iron ore deposits, a mining ministry official said Tuesday, underscoring growing ties between the two countries.
Seven Indian companies, led by the state-owned Steel Authority of India (SAI), won a $10.3 billion deal to exploit three of four blocks at the Hajigak mine in Bamiyan, central Afghanistan, said ministry official Abdul Jalil Jumrani.
A fourth block was awarded to Canada's Kilo Goldmines, he said, with contracts due to be signed in February or March and exploitation of the mine's estimated two billion tonnes of iron ore deposits expected to begin by 2015.
Last month, Afghanistan signed a strategic partnership deal with India aiming to boost trade, security and cultural links, triggering consternation in neighbouring Pakistan.
Afghanistan is believed to have mineral reserves worth as much as $3 trillion which could theoretically generate billions of dollars in tax revenue for the troubled country.
But exploitation of these resources faces massive hurdles due to ongoing instability after 30 years of war in the country, woeful infrastructure, and endemic corruption.
As part of the Hajigak deal India has pledged to invest in surrounding infrastructure projects, including $1 billion to build a railway and monies for a 800-megawatt power plant and 200-kilometre road, Jumrani said. Kilo Goldmines will invest $3.2 billion, he added.
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@H.A. Khan
"And how will Indian company carry iron ore to India if Pakistan does not allow cross border transport? Good luck……."
So simple! We will fly over pakistan.
@proud christian, Thats what happens when a nation is spending money on education which leads the citizen to information through internet and where India's name is referred it attracts them... Sorry to say in your country any time internet,facebook,even BBC news channel banning is possible and hence you might not venture much ..Even if you venture much only bad news about your country and hence you can stay put in your place.. Also any update on the reforms of the "law" which you might be interested ?..Please note that if you are under threat you can look towards west and east as well.
@Thekaydar: "Told You so – this war is about grabbing resource from Afghanistan."
awesome... so it's fine if foreign cos. come to Pak for mining but when it comes to Afg we are all traitors. India is already paying up $10 b. apart from the share that govt. is going to get off the selling of the iron. Considering India is also involved in infrastructure projects there it will benefit Afghanistan to use this resources rather than importing it. Pakistan should worry abt what hv they got from the Reko diq where the Canadian-Chile co. retains 75% of the revenues with the Balochistan govt. only 25%!!! And the co. is ready to fight tooth and nail in an international arbitration against Pak!
Told You so - this war is about grabbing resource from Afghanistan. Why so much destruction and hostility towards Pakistan??? Indians go ahead buy the entire Afghanistan and leave Pakistan alone and while you Indians are working there do not do terrorist acts against Pakistan in your spare time. . . . .Just concentrate on your first job!!
Are Indians that insecure that they have to come to ET to protect their country. How do they even find ET. Boggles my mind see.
@A: That's because ET published the news!
If Balochistan becomes a free nation, then it will also allow India to exploit its huge natural resources like Afghanistan, thereby enjoying the fruits of development.
Dear Ck,
What amount of pleasure you derive in seeing Taliban destroying these development projects which will bring great business and job prospects to war torn Afghanistan. I know now why afghans hate Pakistan.
@A.Khan: At least we dont control governments and destroy humanity by fuelling terrorism. And it was a fair bid. India won the bid. Anyone could have done that. Plus we want to make sure that whatever emerges out of Afghanistan, at least it's not used by terrorists sponsered by you know who to attacks Indians.
@Has: How was Pakistanis looked at around the world?
Pakistanis are: Looked at with suspicion in US, Mollycoddled in UK, Looked at with fear in Germany, Kept at distance in France, Avoided in Switzerland, Tolerated in Canada, Ignored or treated with indifference in Norway and Denmark
BUT HATED MOST IN AFGHANISTAN.
@H.A. Khan: You're the smartest guy/girl alive!!!!!!! Hahahahaha Your comment made my day..
It is a beneficial projects for all three neighbors. Job opportunities to Afghans and Taxes to Afghan Govt. Transportation of raw material to India via Pakistan and it will get transit fees and of course cheap raw material for its own steel mills. Well done India, we are waiting for good business.
@A:
I don't know either Mandarin or Cantonese :(
No matter who controls the mines it would create wealth and jobs for the local people. This is exactly what Afghans need for so long. People with jobs and a good life do not go and give their lives. Good for both the countries. I only envy that Pakistan could do that instead of Talibanization and taking sides.
India has made this deal with the Karzai government which doesn't even control who walks into their compounds. They have no control over Afghanistan. Perhaps the Taliban will let them build these roads and rail networks but I do want to remind the audience that It takes less effort to destroy infrastructure then it takes to build it. Pakistan will actually see this as an opportunity to indirectly hurt the Indian economy. Just wait and see.
@Has: 1) Alexander in fact butchered Afghans (there was a recent article in ET on this) and he turned back at the prospect of facing the mighty Hindu Magadha empire.
2) I understand that Genghis Khan was defeated only once by a small East European city state and that defeat was temporary. Mughals are the descendents of Genghis Khan from his second son.
3) British Empire broke-up because the Crown Jewel - India was lost due to one frail old man in a loin cloth - Gandhi. In-fact Gandhi accurately predicted the collapse of the British Empire once India is lost.
That's the history lesson for today.
@ H. A. Khan
Dont worry. India (India's Border Roads Organization) has already built a 215 km highway connecting Delaram and Zaranj which also connects the Iranian port city of Chabahar. India doesn't need Pakistan for transportation of its goods.
Investing in Afghanistan is not a good deal. Waiting for the desired consequences very soon.
And how will Indian company carry iron ore to India if Pakistan does not allow cross border transport? Good luck.......
@A Fahran: Dude your comment is absolute and perfect. I wish I can recommend it more than once.
@Has: Too late for invite but thanks. I am already enjoying here in Kabul. And from my interaction with locals I feel as part of their family. Pakistan should stop spreading rumors. It scares it's citizen by calling India monster and now it is trying to scare India by calling Afghanistan as monster. I also read the comments when Karzai had signed strategic partnership with India and Pakistani commenter were calling him back stabber and creating fears in Afghans and Indians against each other. Can't you guys do anything creative. Your paranoia and conspiracy theories are worse then Indian saas bahu serials. Grow up, get a life.
There is no country on earth where Indians haven't got success . India has already started foreplay before laying inroads into Afghanistan and Afghans have appreciated it a lot . Remember India is not British empire or Genghis khan or Alexander . We mold to the environment where we go . That's why India has got such a high soft power in the world . You can hate us , but at last you have to love us . Australians bashed Indians , but now they are selling us uranium . Britishers ruled us 200 years , now Indian companies provide 25% employment there . USA has hidden hate mentality and inferior complexity for us , but they admire us . Canada do follow Indians . We are not going to fight against Taliban there , we have forwarded a hand of friendship to them .
@A.Khan: In which world are you living in. Jaguar has been one of greatest turnarounds in Britain's business history.It is going to be case study material at B-schools around the world. Indian entrepreneurs know who handle stuff internationally. No need of advice from a country where business is limited to Wadheras and Jagirdars.
* India believes in achieving economic depth and not strategic depth in Afghanistan. *
I hope the mineral reserves - worth as much as $3 trillion - would mean more a blessing than a curse to Afghanistan. One the one hand they "theoretically generate billions of dollars in tax revenue for the troubled country". On the other hand they could also be the root of many evils, such as corruption and power struggle among the different tribes
Indian Commentators should read Chinese Media and comment there plzzz...Why wasting time here in debating.
@Has: You have a nice rosy "view" of history!! But the reality is completely different. Afghanistan has been occupied by external invaders for 95% of its existence. None of the invaders who occupied Afghanistan ever saw "destruction" or "iradication" because of Afghanistan. The invaders and occupiers left and waned because of the natural cycle of boom and bust of every conqueror in history. The Pashtuns are and have been for all time, one of the most backward tribal people. To attribute the fall of some of the great dynasties to afghans is nothing but pure fiction!!!!
@bilal: Not far from now will you see the fate of Pakistan by that will be decided by the world. i am more confident that Afghanistan will be intact with its borders than Pakistan. Its looks like US and Indians are far more confident and sure that Pakistan will not last. Pakistan is lasting because no one wants its mess and not because its citizens have any committment to sustain their nation-make no mistake in this.
@A.Khan: Do you really mean Jaguar deal done by Tata? Less than three years since Indian conglomerate Tata bought the British car company for £1.1bn from Ford, it has boosted global sales by 26% to 244,000 vehicles in the year to the end of March 2011, reporting record profits of more than £1bn . http://www.guardian.co.uk/business/2011/may/26/jaguar-land-rover-sees-sales-soar
@Afghan: "Thank you India. May our friendship last for ever….and may not our ‘brother’ get upset with it." Amen to your first wish! Who gets upset hardly matters, anymore.
@Has: yes, it just destructed pakistan.all your strategic depth has gone.
@Afghan
If you are so concerned about your brother and friends. Please enlighten us when are the millions of refugees in Pakistan leaving? they have been using our resources for past 30 years or so. generations have grown up knowing nothing about kabul but peshawar? I am Pathan and have seen the ingratitude attitude of " brother " afghans. Time to learn from history.
@Has All the names you mentioned there were of those invaders who came to Afghanistan to conquer it. But, you did forget to mention the name of another invader, Pakistan! Yes, you too tried to conquer Afghanistan through your proxies Taliban. Look what is happening to you now, the entire country is on fire. India's case is completely different, we are not going to Afghanistan to occupy it, but, we are there to do business and bring peace and prosperity to our Afghan brothers. The wealth buried beneath Afghan soil belongs to the Afghans, we are there to help them extract it, so that both of us can benefit from it.
@Afghan: Your brother is going to crying crocodile tears as salt is about to be rubbed in their ego ! Nothing more, time Afghans learn to take their own decisions in their national interests .
Dear Pak friends Indian companies have invested in several countries - USA, UK, Canada, Australia, to name a few. Afganistan is just one of the many countries. Our companies have the expertise, know how, managerial skills.Indian companies will invest in Pakistan as well if opportunity arises. Don't get upset!
@SM: its not as easy as it seems to run a company in Afghanistan dear. Companies have to be very careful with these acquisition issues. A bad deal can dump the company's future and India cant afford to lose money for which Indian people suffers. Jaguar deal is not going so well as an example
@Has: Has bhai, wat you said is correct for all those who went to Afghanistan with the intention of conquer it. India wants only good relations, so Insha Allah India will succeed in the mission
Giving INDIA excess to AF resources is like mortgaging a chicken to a fox. But this sell out of the AF national assets is expected from a Puppet AF regime protected by the US.
Thank you India. May our friendship last for ever....and may not our 'brother' get upset with it.
Looks like India is trying to control the resources in the region.
Congratulations SAI. My father is an employee of Steel Authority of India. Go India Go! JAI HIND.
welcome to the club of destruction, Whoever came to Afghanistan saw destruction or eradicated from map of world, examples. Alexander the great defeat, Genghis Khan defeat way back to Mongolia, British Empire break up, End of soviet Union, Collapse of American Capitalist empire and coming soon the end of India interest baniya system.