Blaming the non-friendly business attitude of Bolivian government, Naveen Jindal controlled, Jindal Steel & Power has scrapped its $2.1-billion Bolivian mining deal, which was the largest foreign direct investment made by an Indian company in the Latin American country.
The decision came following intent of ‘termination of contract’ notice served by the company to the Bolivia government, which gave latter a 30-day window to resolve issues as the company was willing to consider staying on the project, if the Bolivian government could give estimates of gas to be supplied for the operation of the project. A requirement which Bolivian government failed to give into, leading to the termination of contract.
The company, back in 2007 won the rights of development for half of the 40-billion tonne reserves in El Mutun, the world’s largest untapped iron ore deposit for a period of 40 years. The project hit the rough patch as the two sides fought over gas allocation to the venture and the Bolivian government encashing the $13-million bank guarantee for the project.
Recently, the company also pulled out from 3 years long race to acquire Rocklands Richfield, subsequent to an aggressive bid by China's Linyi Mining Group. The Chinese group on June 12, offered to acquire all of Rocklands Richfield's shares at Australian $0.52/ share, which is at a 73% premium to Jindal Steel's publicly stated offer of Australian $0.30 for the coal mining company that is estimated to have about 800 million tonnes of coal reserves in the Bowen Basin in Queensland.
| Company Name | CMP |
|---|---|
| Jindal Steel | 1269.50 |
| Lloyds Metals&Energy | 1622.70 |
| Jai Balaji Inds | 72.59 |
| Steel Exchange India | 8.96 |
| Rajputana Stainless | 125.90 |
| View more.. | |
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