Bolivian Congress OKs Jindal iron, steel deal

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LA PAZ, Nov 24 (Reuters) Bolivia's Congress gave the go-ahead to a contract that will allow India's Jindal Steel and Power to exploit El Mutun iron ore deposit and produce steel in eastern Bolivia, after weeks of squabbling between the official party and the rightist opposition.

The 40-year contract gives Jindal the right to mine approximately half the area of El Mutun, a massive iron-ore deposit near the border with Brazil, in a project worth LA PAZ, Nov 24 (Reuters) Bolivia's Congress gave the go-ahead to a contract that will allow India's Jindal Steel and Power to exploit El Mutun iron ore deposit and produce steel in eastern Bolivia, after weeks of squabbling between the official party and the rightist opposition.

The 40-year contract gives Jindal the right to mine approximately half the area of El Mutun, a massive iron-ore deposit near the border with Brazil, in a project worth LA PAZ, Nov 24 (Reuters) Bolivia's Congress gave the go-ahead to a contract that will allow India's Jindal Steel and Power to exploit El Mutun iron ore deposit and produce steel in eastern Bolivia, after weeks of squabbling between the official party and the rightist opposition.

The 40-year contract gives Jindal the right to mine approximately half the area of El Mutun, a massive iron-ore deposit near the border with Brazil, in a project worth LA PAZ, Nov 24 (Reuters) Bolivia's Congress gave the go-ahead to a contract that will allow India's Jindal Steel and Power to exploit El Mutun iron ore deposit and produce steel in eastern Bolivia, after weeks of squabbling between the official party and the rightist opposition.

The 40-year contract gives Jindal the right to mine approximately half the area of El Mutun, a massive iron-ore deposit near the border with Brazil, in a project worth $2.1 billion.

''Tonight, the National Congress passed two law bills through which we ratify the contract signed between the State and the Indian company Jindal,'' the chamber of deputies said in a statement yesterday.

The first bill ratifies the contract with Jindal, while the second creates a state-run mining company that will tie up in a joint venture with Jindal.

The Bolivian government called for a joint meeting of both chambers of Congress on Friday in order to garner enough support to ratify the deal, after the opposition-controlled Senate refused to endorse the contract as it had been signed with Jindal.

El Mutun, which lies near the Brazilian border, is estimated to contain iron-ore reserves of more than 40 billion tonnes, though they are said to be of medium-grade quality. In comparison, proven reserves in ore-rich Carajas in Brazil's northern state of Para total 1.5 billion tonnes.

As part of the project, Jindal has vowed to develop an integrated steel plant with an annual capacity of 1.7 million tonnes, which would start up by 2010.

Jindal and Bolivia will share the profits generated by the project, which officials have said would guarantee around $200 million per year in taxes and profits for the impoverished Bolivian state.

Reuters TB VP0745 .1 billion.

''Tonight, the National Congress passed two law bills through which we ratify the contract signed between the State and the Indian company Jindal,'' the chamber of deputies said in a statement yesterday.

The first bill ratifies the contract with Jindal, while the second creates a state-run mining company that will tie up in a joint venture with Jindal.

The Bolivian government called for a joint meeting of both chambers of Congress on Friday in order to garner enough support to ratify the deal, after the opposition-controlled Senate refused to endorse the contract as it had been signed with Jindal.

El Mutun, which lies near the Brazilian border, is estimated to contain iron-ore reserves of more than 40 billion tonnes, though they are said to be of medium-grade quality. In comparison, proven reserves in ore-rich Carajas in Brazil's northern state of Para total 1.5 billion tonnes.

As part of the project, Jindal has vowed to develop an integrated steel plant with an annual capacity of 1.7 million tonnes, which would start up by 2010.

Jindal and Bolivia will share the profits generated by the project, which officials have said would guarantee around 0 million per year in taxes and profits for the impoverished Bolivian state.

Reuters TB VP0745 .1 billion.

''Tonight, the National Congress passed two law bills through which we ratify the contract signed between the State and the Indian company Jindal,'' the chamber of deputies said in a statement yesterday.

The first bill ratifies the contract with Jindal, while the second creates a state-run mining company that will tie up in a joint venture with Jindal.

The Bolivian government called for a joint meeting of both chambers of Congress on Friday in order to garner enough support to ratify the deal, after the opposition-controlled Senate refused to endorse the contract as it had been signed with Jindal.

El Mutun, which lies near the Brazilian border, is estimated to contain iron-ore reserves of more than 40 billion tonnes, though they are said to be of medium-grade quality. In comparison, proven reserves in ore-rich Carajas in Brazil's northern state of Para total 1.5 billion tonnes.

As part of the project, Jindal has vowed to develop an integrated steel plant with an annual capacity of 1.7 million tonnes, which would start up by 2010.

Jindal and Bolivia will share the profits generated by the project, which officials have said would guarantee around 0 million per year in taxes and profits for the impoverished Bolivian state.

Reuters TB VP0745 .1 billion.

''Tonight, the National Congress passed two law bills through which we ratify the contract signed between the State and the Indian company Jindal,'' the chamber of deputies said in a statement yesterday.

The first bill ratifies the contract with Jindal, while the second creates a state-run mining company that will tie up in a joint venture with Jindal.

The Bolivian government called for a joint meeting of both chambers of Congress on Friday in order to garner enough support to ratify the deal, after the opposition-controlled Senate refused to endorse the contract as it had been signed with Jindal.

El Mutun, which lies near the Brazilian border, is estimated to contain iron-ore reserves of more than 40 billion tonnes, though they are said to be of medium-grade quality. In comparison, proven reserves in ore-rich Carajas in Brazil's northern state of Para total 1.5 billion tonnes.

As part of the project, Jindal has vowed to develop an integrated steel plant with an annual capacity of 1.7 million tonnes, which would start up by 2010.

Jindal and Bolivia will share the profits generated by the project, which officials have said would guarantee around 0 million per year in taxes and profits for the impoverished Bolivian state.

Reuters TB VP0745

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