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Pol & infra pitfalls await Jindal in Bolivia

The Economic Times
NEW DELHI
Petroleumworld.com 07 31 07

Naveen Jindal-owned Jindal Steel and Power Ltd's Rs 8,000 crore steel and power projects in Bolivia will be anything but a cakewalk, given the adverse political and infrastructural climate in that country, the UNCTAD has said.

"The political, infrastructural and technical problems at El Mutun (project site) are formidable. The mine straddles the border to Brazil while the distance to the Atlantic ocean is almost 2,000 km," the United Nations Conference on Trade and Development (UNCTAD) said in its latest report on global iron ore scenario.

Last week, Jindal said his company has clinched a 'historic agreement' with the Bolivian government to a develop a 20 billion tonne iron ore mine and set a two million tonne steel plant there.

"Just to get to the Paraguay river it is necessary to build a railway through the swamps surrounding the Mutun area," the UN body observed in its report.

"The size of the ore resources has been questioned and the type of ore in the deposit is not easily processed with existing technologies," the UN body warned.

Expressing its apprehensions on the project, UNCTAD said: "Whether this huge and extremely complex project will ever materialise still remains to be seen."

In its agreement with the Bolivian government, JSPL said it would also set up a 450 MW gas-fired power plant in Bolivia to meet production needs and the country's government has assured to provide gas at a low rate.



Petroleumworld 30 07 07

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