Jindal Steel and Power (JSPL) plans to spend USD 600 million in the current year on the development of steel units, a sponge iron plant and an iron ore pellet plant as part of an integrated facility in Bolivia. The company expects to sign a gas supply agreement with the local government authorities by next month for its upcoming integrated facilities. In 2007, Jindal Steel Bolivia -- a JSPL subsidiary -- had secured 40-year development rights to the El-Mutun iron ore mine, which holds reserves of around 20 billion tonnes. The mines are considered to be one of the largest untapped iron ore deposits in the world. The company also signed an agreement with the Bolivian government to set up an integrated 1.7 million tonnes per annum (mtpa) steel plant, a 6-mtpa sponge iron and a 10-mtpa iron ore pellet plant in the country at an investment of USD 2.1 billion.
JSPL's project is considered to be one of the largest made by an Indian entity in South America and the investment made is also the highest by a foreign firm on a single project in Bolivia. However, the project has been marred by controversy in recent times as the Naveen Jindal-led company had gone for arbitration over a financial dispute in December. JSPL has claimed that the Bolivian government has not upheld its part of the contract with respect to the Indian entity getting supply of natural gas to operate the mining site and has resorted to arbitration over the issue. The gas requirement was estimated at 0.5 million standard cubic metres per day (MSCMD) in 2014. By 2016, it would increase to 6 MSCMD and in 2017, the project would require daily supplies of 10 million cubic metres of gas. However, the Bolivian government has claimed that JSPL has paid only 2 per cent of its commitment of USD 600 million in two years and accordingly, the authorities have seized USD 18 million provided as guarantees by JSPL for the project.
| Company Name | CMP |
|---|---|
| Jindal Steel & Power | 1028.80 |
| Jai Balaji Inds | 860.00 |
| Lloyds Metals&Energy | 681.90 |
| Steel Exchange India | 12.60 |
| KIC Metalik | 45.76 |
| View more.. | |
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