Foundry Daily News


Tempers India Steel Giant

The Indian company Jindal Steel must define by February 28 the terms of its contract on El Mutun, the largest iron mine in Bolivia.

Mining Minister Guillermo Dalence said Jindal Steel may continue operations if it respects Bolivian laws, otherwise another Indian partner will take over.

Oil Minister Carlos Villegas said they must still negotiate taxes, which are to remain fixed for 40 years.

Jindal wishes to purchase subsidized gas, which Bolivia rejects.

A third matter of contention is the 100 million dollars Jindal must pay to secure investments in Bolivia, where the mine s reserves were calculated at 40 billions tons of iron and ten billion in manganese.

Company Vice President Vibrand Gujral voiced interest in the investments, adding that they can reach an agreement with Bolivia on the price of gas and guarantees.

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