Business Daily from THE HINDU group of publications
Saturday, Mar 03, 2007
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Business Daily from THE HINDU group of publications Saturday, Mar 03, 2007 ePaper |
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Steel Corporate - Overseas Investments Jindals ink pact, to invest $2.1 b in Bolivia Ambarish Mukherjee
The company would sign the final agreement by mid-April and intends to start on the groundwork by the last quarter of the year, the Vice-Chairman and Managing Director, JSPL, Mr Naveen Jindal, told Business Line. In June 2006, JSPL had won the bid for the mines and for setting up steel plants. However, the company and the Bolivian authorities were unable to decide on the finer details, most of which related to financials. The Special Purpose Vehicle (SPV) for the Bolivian investment — Jindal Steel Bolivia SA — was incorporated in October 2006. "The total investment of $2.1 billion would be spread over eight years. The final production capacity would be 1.7 million tonnes of steel, 10 million tonnes of pellets and six million tonnes of sponge iron," Mr Jindal said, adding that the first sponge iron plant would be commissioned three years from now. El Mutun, believed to be one of the world's biggest iron ore reserves, contains an estimated 40 billion tonnes of iron ore of medium-grade quality. The plants would be gas-based since Bolivia is a major producer of natural gas and has agreed to sell natural gas at $3.91 per million British thermal unit to Jindal Bolivia that would account for 70 per cent of the project's power needs.
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