Cement factory to be built in Herat province

Wahidullah Shahrani, Afghan Minister of Mines

The Iranian company Peshgaman Sanat-i-Majad will invest $150 million in establishing a cement factory that will produce one million tons of cement in the Zinda Jan district of Herat province, according to a report today from Pajhwok Afghan News (PAN).

Afghanistan’s Minister of Mines, Wahidullah Shahrani said that this project will boost the country’s annual revenue by $10 million. Under the agreement signed with the Iranian company, Afghanistan will get a royalty of two dollars per ton of cement production and 20 percent of the factory income in tax.

The agreement also includes coal extraction. The company will give Afghanistan $20 as tax per a ton of coal extraction. The coal will be extracted from the Pahlawanan mine. Also, the Iranian company has agreed to construct 11 kilometers of road, hire Afghans for the work, and establish a clinic, and construct houses, as well as a masjid for the workers in the area.

According to the PAN report, a recreational park will also be created and education facilities provided for workers’ children. The report also added that this will not only increase revenue for the government, but will also reduce cement prices.

March 18, 2012 · admin · No Comments
Posted in: Afghanistan's Economy, Education, Job Creation, Reconstruction and Development