KABUL – *The Afghanistan Ministry of Mines and Petroleum (MoMP) has startedtackling issues around Hajigak iron ore mine which has been standing idledespite the awarding of a contract six years ago. *

At the time, an Indian consortium won the tender to mine Hajigak but thecontract was never signed.

Hajigak Mine has the largest iron oxide deposit in Afghanistan, and islocated near the Hajigak Pass – which lies between Bamiyan and MaidanWardak provinces. It has the biggest untapped iron ore deposits of Asia.

The Indian consortium said it would invest more than $11 billion USD in themine which included the building of a steel factory, but soonafter, reports emerged that the company was no longer interested. Thisissue was then confirmed by officials from the Ministry of Mines.

The acting mines minister Nargis Nehan meanwhile paid a visit to Canadalast week to discuss a number of issues, including that of Hajigak with theCanadian firm, Kilo Goldmines Company.

“We are trying through diplomatic channels to implement the projects andnow the acting minister is in Canada to get the views of theCanadian company in this regard,” Waliullah Zadran, acting director oflegal services of the Ministry of Mines, said.

An expert said Afghanistan would have been able to afford a big part of theraw materials required for Turkmenistan-Afghanistan-Pakistan-India (TAPI)gas pipeline project if iron ore was being mined at Hajigak.

“There is a high demand for steel in the country. Indian companies alsosuggested establishing a steel factory in the country. It should have beenimplemented,” Zaman Hashimi, a mining expert said.

The ministry said in a statement on Saturday that Nehan will presentAfghanistan’s Strategy for the Extractives Sector at PDAC 2018 on Wednesday.