Iron smelting factories in Afghanistan are facing challenges due to the lack of raw materials and insufficient electricity, prompting them to request the Islamic Emirate to allocate one of the iron mines to them. The industrialists claim that they currently meet the country’s iron needs through smelted iron but are struggling due to these challenges.
Haji Gul Asadi, an industrialist, highlighted the major problem faced by the factories, stating, “Our major problem is the lack of raw materials and insufficient electricity.” Another industrialist, Rahimullah Mayar, urged the Minister of Mines and Petroleum to allocate part of the Haji Gak mine to them, expressing their willingness to convert from iron ore to sponge iron within one to two years.
The Union of Iron Smelting Factories informed that there are 42 operational steel smelting plants in the country, investing over $500 million in this sector and providing direct employment opportunities for 20,000 people.
The Ministry of Mines and Petroleum announced plans to tender the iron mines in Panjshir province, with special privileges for local companies. Spokesperson Homayoun Afghan stated, “We have announced the Silver House Panjshir iron mine for bidding, and all traders can submit a solid proposal according to our principles and terms, with the possibility of allocation based on these principles.”
Khanjan Alkozai, a board member of the Chamber of Commerce and Investment, expressed hope for the allocation of the mine to the factories, emphasizing the need for unified operations and significant investment. The ministry has allocated four iron mines in Herat province to foreign companies with local partners, valuing these mines at $5.57 billion.
