Industrialist Naveen Jindal-led Jindal Steel and Power (JSPL) today said it has resumed work on its $2.1-billion project in Bolivia after the South American country allocated about 3,000 acres of land for the venture.
"The company has resumed activities to develop the El Mutun iron ore deposit and steel plant project in Bolivia's Santa Cruz area.
"...The Bolivian government has now provided an additional about 3,000 acres of land for the project in addition to around 1,000 acres provided earlier," the leading steel maker said in a statement here.
The company requires a total of of about 5,000 acres of land for the project, which will see the company building a 1.7 million tonnes per annum (MTPA) steel plant, a 6 MTPA sponge iron and 10 MTPA iron ore pellet plant in the country.
It would also develop a power plant to feed the steel project.
"These are expected to become operational in the next 3-4 years," it said.
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JSPL had entered into an agreement with the Bolivian government in 2007 for the project, which included development of the El Mutun mines, one of the world's single biggest iron-ore deposits with reserves of more than 40 billion tonne.
However, the company said it kept the mega project on hold due to, "the non-availability of land."
The 40-year contract that gave the company the right to mine about half of the reserves of iron ore.
"Land was one of the key enablers for starting work on the steel project in Bolivia even as it got access to iron ore mines in the Latin American country...President of Bolivia Evo Morales, has (recently) signed a law ceding land," it added.
Earlier this year, the Bolivian government was reportedly considering penalising the Indian firm with $800 million for the delay in starting the project. But, the company had maintained that all the issues have been resolved and has now signed a revised deal for the project with the Bolivian government this month.