MercoPress. South Atlantic News Agency

Bolivian approval for gigantic iron and steel project

Jindal Steel & Power Ltd., an Indian steel and power producer, secured government approvals from Bolivia for its 2.1 billion US dollars Mutun iron ore and steel project, its largest investment overseas.

Jindal will build a 1.7 million-ton steel plant and develop 20 billion tons of iron ore reserves, the New Delhi-based company said in a statement to the Bombay Stock Exchange on Thursday. The agreement has now become legally effective after approval by the National Congress of Bolivia and completion of legalization formalities, Jindal Steel said in a filing to the Bombay Stock Exchange. Effective steps would now be taken for development of EI Mutun Iron Ore Mine and setting up of the steel plant, the company added. El Mutun is one of the world's biggest iron-ore mines with proven reserves of 40 billion tonnes of medium-grade quality ore. Jindal Steel, which won the bid in June, last year, would be allowed to exploit 50% of the reserve. The project would allow Bolivia to develop its steel industry and the proposed investment was the single largest in Bolivian history. Jindal Steel is a part of the Jindal group with business interests in steel production, mining, power generation and coal and diamond exploration.