Iranian firm to set up cement factory in Herat
During the first phase of the project, the Iranian company Peshgaman Sanat-i-Majad will invest $150 million in establishing a cement factory that will produce one million tonnes of cement in Zinda Jan district.
Minister of Mines Wahidullah Shahrani said the project would boost Afghanistan’s annual revenue by $10 million (492,200,000 afs).
The company would extract coal from the Pahlawanan mine for use in cement production that would start in two years and a half, the minister said, adding that the pact would be valid for 30 years.
Under the agreement, the firm will give the Afghan government a royalty of two dollars per tonne of cement production and 20 percent of the factory income in tax. Additionally, company would also give $20 as tax per a tone of coal extraction.
Under the contract, the company will have to hire Afghans, establish a clinic and construct houses for workers and a mosque in the area, Shahrani said. A recreational park will also be created and education facilities provided for workers’ children.
The construction of an 11 kilomentres road is among the company’s responsibilities. The government has obtained a $1.5 million guarantee from the firm, which was selected from amongst 13 bidders.
Ibrahim Bai Salami, the Peshgaman Sanat-i-Majad head, was happy with the award of the contract and promised they would implement the agreement in the best possible manner.
The Afghan government would get a $10 million profit as a result of the agreement that would reduce cement prices by 20 percent, he concluded.
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