KABUL, Nov 20 (Pajhwok Afghan News): A Chinese private Company Metallurgical Group Corp (MGC) has been announced as successful bidder for the extraction of Ainak copper mine of central Logar province and will pay $400 million to the government annually as tax.

Eng. Muhammad Ebrahim Adil, mine minister announced on Tuesday the company will invest $2.8 billion to extract the mine.

He said the mine has been leased for 30 years to the company and will pay $808 million each year besides $400 million as tax to Afghan government.

He added the bidding process was transparent and was conducted by a committee consisted of President's advisor on mine, ministry of commerce, economy and deputies of some other ministries.

Adil said 9 companies belonging to US, Australia, Canada, Russia, China, India and Kazakhstan participated in biding.

According officials of mine ministries the Ainak copper mine located in 30 km southeast of Kabul in Logar province has over 12 million tons copper which is one of the biggest mine in the world.

According to the officials the mine was discovered in 1974 and was surveyed during 1978-79, but the mine was not extracted since then.

According Adil, the contract will be formally signed with the Chinese company in months and its preliminary work will begin and over 3000 people will be employed.

According the cabinet secretariat, the cabinet decided to hand over the copy of contract to lawyers and economists for assessment to avoid any ambiguity which creates future problems and also recommended to establish a committee from experts to monitor the progress of the project.

Adil said the company will establish a power station with capacity of 400 mega watt at the cost of over $400 million and will construct a city for the workers of the company.

He said 200 mega watts will be used by the company and the rest will be distributed to residents in Logar province through ministry of water and energy.

He said the company will also establish a railway route from Hairatan port in northern Afghanistan to Torkham in eastern Afghanistan for the transportation of the mine.

The mine minister said if the Chinese company steps back from the project a Canadian company which won second position in bidding will be handed over the lease.

He said Ainak copper was the first step in privatizing the mine in Afghanistan.

He said he will welcome all national and foreign companies for future bidding in other mines in Afghanistan.

Abdul Rahman, advisor to President on mines, Kabul University Dean considered the Ainak project of Logar province as one of the biggest economic projects in Afghanistan.

Mustafa Basharat

Mnm/aj