The contract to develop Latin America’s largest iron ore deposits – Bolivia’s El Mutún – has been awarded to Indian company Jindal Steel and Power. The government says the deal marks the launch of the country’s iron and steel industry. Jindal has promised to invest $2.3 billion in the project over the next 10 years, the largest foreign investment yet secured by the new government led by Evo Morales. The company will not only extract iron ore but also produce iron and steel. Bolivia, rich in mineral and energy resources, has to date largely exported raw materials rather than processing them. The deal is likely to earn President Morales much political capital, after the government changed the terms of the original tender to ensure more job creation. The changes in the terms were to include a steel production operation and guarantee the site be fueled by natural gas. The project will include the extension of a gas pipeline and investment in local infrastructure to accommodate the terms. Jindal was the only company to remain in the bidding process after Netherlands-based Mittal Steel failed to make the final cut and Argentine Siderar withdrew from the process.
Technorati Tags: Bolivia, Iron and steel industry, El Mutún, Eduardo Bravo Losada, Bravo & Bravo Losada, IGAF, Siderar, Mittal, Evo Morales
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