Jindal Steel to invest big in Bolivia

Naveen Jindal’s Jindal Steel and Power Ltd has confirmed that they have finally bagged the El Mutun iron ore mines in Bolivia. This was possible only after a round of weeklong negotiations.

These mines are said to have deposits of 40 billion tones making them one of the largest iron ore reserves in the world.

Jindal had been involved in talks with the Bolivian government since May 24 on the royalties, which would be paid to the latter.

JSPL Executive Vice-Chairman and Managing Director Naveen Jindal said in a statement: “The conditions are that we will have to pay a royalty of 8-9 per cent for iron ore, 10 per cent for concentrate (pellets), 7 per cent for sponge iron and 5 per cent for steel, all on exports. Another clause is that the surplus production will be exported only after catering to the domestic market there.”

The infrastructure to be developed by the company is expected to provide direct employment to 2,000 people and indirect employment to 10,000 people in Bolivia.

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