Afghanistan’s Ministry of Mines is offering the mineral rights to the Hajigak iron deposit and surrounding lands exhibiting exploration potential through a Tender Process. The process is expected to culminate in the granting of exploitation and exploration concessions via a Mining Contract. According to the Afghanistan Geological Survey and the British Geological Survey, the world-class Hajigak iron deposit(s) have an estimated resource base of some 1,800 Mt at an estimated grade of 62% Fe (using the Russian classification system). These resources occur in 16 ore bodies, as much as 5 km in length, 380 m wide and more than 550 m down, along a zone over 32 km in length. Previous feasibility studies indicate that the bodies are amenable to open pit mining. Resources of coking coal are available, providing the possibility of creating an integrated iron and steel facility. The deposit is located in the mountainous Bamiyan Province, 130 km west of Kabul.

Given that natural resources are a priority for the economic development of Afghanistan, the Ministry is interested in those companies that will commit to development of the Hajigak deposit on an accelerated basis. The eventual operations are expected to include a coal mine, a power generation facility, the iron ore mine/processing facilities and transport assets for iron ore and end products. However, the security implications are massive.

Preliminary data about the Hajigak deposit are available at the Ministry’s offices and online on the Ministry’s website, http://mom.gov.af .

Despite the security problems, last year an exploration, exploitation, processing and smelting contract was signed for the Aynak copper deposit between the Ministry of Mines and MCC Company of China. The intention is to build a complex to export finished copper products.