Jindals signs deal to set up $2.1b steel unit in Bolivia

NEW DELHI — Corporate India's overseas foray for setting up large units in the steel space has added another feather with Jindal Steel and Power signing a pact with Bolivia for a $2.1 billion steel unit in the country.


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Published: Sat 3 Mar 2007, 8:49 AM

Last updated: Sat 4 Apr 2015, 10:40 PM

The unit has been proposed in El Multan, which the company says, has one of the world's largest iron ore reserves estimated at 40 billion tonnes of medium-grade quality. The location is in the country's southeast near the Brazilian border.

"A definitive contract would be signed with the Bolivian government within 45 days," Jindal Steel, a part of the Rs20 billion ($435 million) organisation, said in a statement yesterday.

"Bolivia, a major natural gas producer, has agreed to sell Jindal natural gas at $3.91 per million British thermal unit for steel making, which represents 70 per cent of the project's power needs," the statement added.

In addition, Jindals will only pay $1.955 per million British thermal unit for the gas for power generation, which will represent 30 per cent of the need.

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