Jindal Steel and Power get Bolivian Parliament nod for new JV project

New Delhi: The Bolivian Parliament has given its nod to a joint venture between Bolivia and Jindal Steel and Power (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 agreement 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 is still to analyse some details of the contract before sending it to the senate, which is to ratify the deal.

A JSPL official could not immediately confirm the development.

The Bolivian government was also exploring ways to disburse initial funding for the JV company, Empresa Siderurgica del Mutun. The company required about $7 million to meet operating costs such as hiring employees and opening offices, the briefing said.

The JV company was 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 a plant. The JV company would be mining 20 billion tonnes, out of El Mutun’s 40 billion tonne reserves, from mines located near the Brazilian border.

Of the total investment planned, 20 per cent would go into mining 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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IN THE RIGHT MOULD

Jindal Steel and Power (JSPL) to develop El Mutun iron ore mines and set up a steel plant in that country
JSPL plans to invest $2.3 billion in the next 10 years for mining and setting up the plant
Of the total investment planned, 20 per cent would be for mining and remaining for the steel plant
Of El Mutun’s 40 billion tonne reserves, the JV company would be mining 20 billion tonne from the mines located near the Brazilian border.