JSPCL links with Bolivia for new projects

New Delhi: Jindal Steel & Power Ltd (JSPL) has said that the agreement with the Bolivian Government for developing an iron ore mine and setting up a steel plant has become effective.

JSPL had entered into an agreement with the Bolivian Government in July last year for the development of EI-Mutun Iron Ore Mine and setting up a 1.7-million-tonne steel plant.

“The agreement has now become legally effective after approval by the National Congress of Bolivia and completion of legalisation formalities. Effective steps would now be taken for development of EI Mutun Iron Ore Mine and setting up of the steel plant,” a JSPL official told Business Line.

El Mutun is one of the world’s biggest iron-ore mines with proven reserves of 40 billion tonnes of medium-grade quality ore. Jindal Steel, which won the bid in June last year, would be allowed to mine 50 per cent of the reserves. The company is proposing to invest around $2.1 billion in the next five years on the project.

In September last year, the joint venture agreement signed by both the parties cleared the first hurdle with the Bolivian Chamber of Deputies giving its approval.