Jindal Steel may be fined in Bolivia

Bolivia’s iron ore mining venture with Jindal is in jeopardy. The contract is still in tact; however the steel company would have to pay a penalty for not fulfilling the terms of the agreement. The Indian company would have to pay $800 million in damages.

The parties were having disagreements over the contract and the Bolivian government warned the steel company to either stick to the contract or leave.Jindal wanted to invest $2.1 billion in El Mutun, but wanted to produce 40% less steel and around 20% less iron a year than was agreed in the original contract.