Tata Steel, JSW Steel and Jindal Steel and Power Ltd (JSPL) are three private players that SAIL has roped in to form a consortium to bid for Hajigak mines in Afghanistan.
NMDC and RINL are the other state-owned companies in the consortium, sources said. The SAIL-led consortium is expected to place its bid for the Hajigak mines by September 3.
The SAIL Chairman, Mr C.S.Verma, said if the SAIL-led consortium wins the race, the Government-owned companies would have a majority 52 per cent stake in the mine and the remaining would be with the private sector firms, not necessarily in equal proportion.
Mr Verma was speaking to reporters on the sidelines of 5{+t}{+h} India Steel Summit organised by Assocham. “The Government of Afghanistan has assured us security. Ultimately, growth will prevail over terrorism,” Mr Verma said
The Afghanistan Government recently extended the deadline for bidding to September 4 from August 2 fixed earlier. The Hajigak iron ore deposits are located in Bamiyan province, some 130 km west of Kabul, and are estimated to contain 1.8 billion tonnes of haematite reserves.
SAIL and 15 other Indian firms had been shortlisted by the Afghan Government to bid for the iron ore reserves.
No price hike
Stating that the rise in interest rates would not impact the demand for steel in India, Mr Verma said there is no possibility of a price increase in the near term.
Addressing the Steel Summit, Mr Verma said joint initiative by steel companies on coal, like in the case of consortium for Hajigak, could help the entire industry and “give us better bargaining power.” The rising prices of coking coal have been a concern for the Indian industry in the recent quarters, impacting the profitability of the sector.
Mr Verma said a collaborative effort in terms of sharing best practices, would enhance the competitiveness of the industry.