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Bolivian Govt okays Jindal Steel’s mining project

Bolivian Govt okays Jindal Steel’s mining project
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First Published: Mon, Sep 10 2007. 02 58 PM IST
Updated: Mon, Sep 10 2007. 02 58 PM IST
PTI
New Delhi: The Bolivian Parliament has given its nod to a joint venture agreement signed between Bolivia and Jindal Steel and Power Ltd (JSPL) to develop El Mutun iron ore mines and set up a steel plant in that country.
“The Bolivian Chamber of Deputies has given its approval to the joint venture signed last July by the government and Indian steel company JSPL to develop an iron ore mine and steelworks at El Mutun iron ore deposit,” Steel Business Briefing reported.
However, the House has still to analyse some details of the contract before sending it to the Senate, which is to ratify the deal.
When contacted, a JSPL official could not immediately confirm the development.
The Bolivian government was also exploring ways and means to disburse an initial funding for the JV company — Empresa Siderurgica del Mutun. The company requires about $7 million to meet operating costs like hiring employees and opening offices, the briefing said.
The JV company is slated to meet today to approve its statute, it added.
JSPL has planned to invest $2.3 billion in the next 10 years for mining and setting up the plant. Of El Mutun’s 40-billion-tonne reserves, the JV would be mining 20 billion tonnes from the mines located near the Brazilian border.
Of the total investment planned, 20% would be for mnining and remaining for the steel plant. The debt-equity ratio for the project would be 60:40.
Jindal would pay $20 million to the government in taxes, SBB added.
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First Published: Mon, Sep 10 2007. 02 58 PM IST