NEW DELHI/KABUL,  (Reuters) – India will explore a route through rival Pakistan to transport iron ore from Afghanistan, the head of a consortium involved in the $11 billion project said, hoping that economic benefits will outweigh political hostility.Despite a spike in tension in Afghanistan and uncertainty over the future once foreign combat forces leave in 2014, India was committed to developing the Hajigak mines and a 6 million tonne steel plant alongside, C. S. Verma, chairman of Steel Authority of India, told Reuters in an interview.

A contract is to be signed in two months in what will be the biggest foreign investment in Afghanistan’s resources sector, larger than the $4.4 billion the Chinese are investing in the Aynak copper mine.

Mining work is expected to begin in late 2014 just when Afghan security forces take over security responsibilities and it remains a big concern whether they will be able to tackle a Taliban insurgency at its worst.

For the Indians, the challenge of transporting the ore out of the landlocked country is an additional issue given they have no direct access.

Pakistan is the obvious route and the alternative is a longer way westwards to Iran and then shipping it through the port of Chabahar in Eastern Balochistan that India has promoted to reduce Afghanistan’s dependence on Pakistan.

But Verma told Reuters that the consortium made up of seven state and private firms was looking to move the ore along Pakistani roads crossing over to India, believing the benefits far outweighed political hostility between the two countries.

“What we have here is a gold mine, more than just an iron mine. I believe this is what everyone else will eventually realise. Ultimately the economic interests of everyone in the region including Pakistan will take precedence”.

The document stated that Pakistan’s security agency was helping the Taliban in directing attacks against foreign forces  a charge long denied by Islamabad.

The findings were based on interrogations of more than 4,000 Taliban and al-Qaida detainees, the Times said, adding the document was scarce on identifying individual insurgents.

A US state department spokesman and Britain’s Foreign Office both declined comment on the report. Nato and Pakistani officials could not be immediately reached for comment.

Despite the presence of more than 100,000 foreign troops, the UN has said violence in Afghanistan is at its worst since the Taliban were ousted by US-backed forces in 2001.

The Nato-led International Security Assistance Force (Isaf) says levels of violence are falling.

Citing the same report, the BBC reported on its website that Pakistan and its Inter-Services Intelligence (ISI) agency knew the locations of senior Taliban leaders and supported the expulsion of “foreign invaders from Afghanistan”.

“Senior Taliban leaders meet regularly with ISI personnel, who advise on strategy and relay any pertinent concerns of the government of Pakistan.”

The Times said the document suggested the Taliban were gaining in popularity, partly because the severe Islamist movement was becoming more tolerant.

The report was quoted as stating: “It remains to be seen whether a revitalised, more progressive Taliban will endure if they continue to gain power and popularity. Regardless, at least within the Taliban the refurbished image is already having a positive effect on morale.”

Source: The Guardian UK