Jindal Steel, Bolivia sign $2.1bn deal

A year after it won the mining bid, Jindal Steel and Power (JSPL) signed a contract on Wednesday with the Bolivian government to develop the vast El Mutun iron ore mines, and set up a 1.7 million tonne steel plant with an investment of $2.1 billion (Rs 8,400 crore).

JSPL will build a 450MW power plant near the El Mutun mines, and will be allowed to exploit 50% of the reserves.

The Bolivian government expects to receive around $200 million a year in profit-sharing and taxes from the 40-year concession agreement.