Jindal to finalise Bolivian mine deal next week

MUMBAI: A senior team from the Naveen Jindal-controlled Jindal Steel and Power (JSPL), led by vice-chairman and CEO Vikrant Gujral, will leave next week to hold talks with the Bolivian government to finalise the contract for the development of El Mutun mines. Among various issues, the two sides will also discuss the possibility of the Indian company setting up a Bolivian subsidiary to spearhead operations in the country.

“We will be in Bolivia next week to hold talks on various parametres of the project including the setting up of plants and mining. The final agreement will be signed later,” Mr Gujral told ET. He, however, declined to put a date on the signing.

Mr Gujral refuted reports originating from the South American country that the $2.3-bn project may again face a roadblock because JSPL has been asked by the government to create a local subsidiary. “This is untrue. We received the qualification letter from the Bolivian government last week,” said Mr Gujral. The letter is supposed to be a virtual go-ahead for the project.” The subsidiary issue, he said, “is part of any project and will be included in the talks.”

It has been a rollercoaster ride for the Delhi-based Jindal company ever since it signed the MoU with the Bolivian government earlier this year to develop the El Mutun mines. The government had later put on hold its approval for the development, demanding higher royalty. JSPL had also failed to submit the technical report within 60 days of its June 2 agreement.

Last month, the project got a fresh lease of life with the government accepting the technical report on the project. Managing director Naveen Jindal had told ET that the contract will be signed within four weeks. Sources add the contract will be signed with Bolivian president Evo Morales in the border city of Puerto Suarez, whose residents had come out celebrating in the streets after the agreement was signed in June.