Financial Daily from THE HINDU group of publications
Monday, May 08, 2006
Financial Daily from THE HINDU group of publications Monday, May 08, 2006 |
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Corporate
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Overseas Investments Industry & Economy - Mining & Quarrying Jindal Steel's Bolivia mine acquisition in limbo Our Bureau
New Delhi , May 7 Jindal Steel & Power Ltd' (JSPL) plan to acquire the El Mutun iron ore mines in Bolivia is suddenly faced with uncertainty due to the recent policy changes of the Bolivian Government. Last week, the Bolivian Government sent in the army and nationalised the petrol and gas sector. Iron ore is already in the hands of the Government there, but selling of the iron ore mine would have meant privatisation of iron ore mining. JSPL is not sure whether the last round of bidding would take place in time because of the Government's fresh moves at nationalisation. "We are waiting to see what will happen and are hoping that the final bidding would be over by the end of May," company officials said. The bidding initially had five competitors - JSPL, Rotterdam-based Mittal Steel, China's Shandong Luneng Hengyuan Trading Group Co Ltd, a joint venture between Argentina's Siderar SAIC and Techint Argentina SA, and the Brazil-based EBX Group. Later, EBX was barred from participating by the Bolivian Government, which said that the company had started setting up a pig iron plant near the border with Brazil without the necessary permits. The El Mutun mines are one of the largest iron ore mines in the world containing 40 billion tonnes of reserves. JSPL is also looking at iron ore mines in India and has held discussions with the State Governments. Company officials said the company's proposed mega power project at Raigarh in Chhattisgarh would start generation next year. "The first 250 MW plant would start generating from June next year. Thereafter, in every quarter we would start one 250 MW power plant, taking the total to 1,000 MW," they added.
More Stories on : Overseas Investments | Mining & Quarrying | Minerals
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