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Jindal expects approval for Bolivia iron-ore project this week
By Matthew Craze
Bloomberg
BUENOS AIRES
Petroleumworld.com 09 14 07
Jindal Steel & Power Ltd. expects to receive congressional approval this week to go ahead with its Mutun iron-ore project in Bolivia, the company's biggest-ever investment overseas.``Senate is likely to approve this week,'' Sushil Maroo, finance director for New Delhi-based Jindal, said today in an e-mailed response to questions.
Jindal will invest $2.1 billion in the project in the southeastern corner of Bolivia, the largest investment ever in the South American country. The money will be spent over eight years on a 10 million-metric-ton iron-pellet plant, a 1.7 million-ton steel mill and a 450-megawatt power plant, Jindal said in a July 19 statement to the Bombay Stock Exchange.
The project at El Mutun, near Bolivia's southeastern borders with Brazil and Paraguay, will help Jindal secure supplies of iron ore after prices tripled in five years. Half of El Mutun's 40 billion-ton ore deposit will be available to the steelmaker, Jindal said.
Bolivian President Evo Morales signed an agreement on Sept. 9 with Venezuelan President Hugo Chavez to develop another iron deposit in the Mutun area. The countries will form a company to develop the deposit, which has 42 billion metric tons of reserves, according to Venezuela's information ministry.
To contact the reporter on this story: Matthew Craze in Buenos Aires at mcraze@bloomberg.net .
Bloomberg 11 09 07
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