Wednesday, August 25, 2010

JSPL resumes Bolivian iron ore mining 

Jindal group major, Jindal Steel & Power Ltd (BOM:532286) has resumed work on projects worth $2.1 bn involving development at El Mutun iron ore deposits and a steel plant in Bolivia’s Santa Cruz area. 

The project was on hold due to, "the non-availability of land." However, the work was resumed after the Country allocated about 3000 acres of land for the venture, in addition to previously provided 1000 acres. 

According to a company statement, the company requires a total of about 5,000 acres of land for the project, which will see the company building a 1.7 million tonnes per annum (MTPA) steel plant, a 6 MTPA sponge iron and 10 MTPA iron ore pellet plant in the country. 

A power plant will also be set up to feed the steel project. “These are expected to become operational in the next 3-4 years,” the company statement said. 

JSPL had signed a contract with the Bolivian government in 2007 for the project, which included development of the El Mutun mines, one of the world's single biggest iron-ore deposits with reserves of more than 40 billion tonne. 


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