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India’s Jindal Steel terminates $2.1 bln contract with Bolivian Govt |
India’s Jindal Steel & Power Ltd. has said
that it has terminated a contract to invest 2.1 billion dollars with the Bolivian
Government to mine iron-ore and make steel in the South American country. According to the
Wall Street Journal, Naveen Jindal said that the contract was terminated
after the Bolivian Government’s unwillingness to supply 10 million cubic meters
per day of gas to the company’s facilities within 180 days of signing the contract,
as was originally agreed. Jindal said that the government also did not accept
its request to scale down its investment, which the company wanted to do because
of the shortage of gas. The company said it will consider suing the Bolivian Government
in an international court for breach of contract. The project had been on hold
since 2007, when the Indian steelmaker entered an agreement with the Bolivian
Government to develop the El Mutun mines. Earlier, Jindal said it had spent 90
million dollars so far on the project, including the forfeited bank guarantees.
It also had invested more than 600 million dollars until March 2012 for the purchase
of technology, machinery and other equipment, as well as in advances to vendors.
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