Jindal's Bolivia plant may be delayed

Naveen Jindal-promoted Jidnal Steel and Power's ambitious project to develop iron ore reserves and build a steel plant may be delayed as the Bolivian senate has returned to the Chamber of Deputies, the joint venture signed by the country's government and the Indian steelmaker.

"The senate, controlled by the Opposition, approved the project but added to the document several changes, making necessary a new analysis in the chamber," the Steel Business Briefing (SBB) reported.

"This will delay even more the agreement signed almost four months ago, and could put at risk its implementation. Pro-government deputies have already declared that it will reject changes added by the senators," the report added.

Some of the 11 changes made by the senate include creating a law to allow Jindal's operation at El Mutn. It also gives the cities of the region some stake in the net profit obtained by the state-owned Empresa Siderrgica del Mutn (ESM), formed to represent Bolivia in the joint venture, SBB said.

Jindal intends to invest $2.1 billion over eight years to install iron ore and steel making facilities at El Mutn, it added.