Indian, Bolivian steel firms sign joint mining deal
Friday, 20 July 2007
LA PAZ, July 19 (AFP): India's Jindal Steel and Power and Bolivia's state-run Empresa Siderurgica Mutun have signed an agreement to exploit one of the richest iron deposits in the world in southeastern Bolivia, the government's mining minister said.
The talks were "a long process of discussions involving technicians from different branches of the executive who boosted Bolivia's position" in the deal, Mining Minister Alberto Echazu said yesterday.
"The work is done. We've waited more than 50 years for this," said Bolivian President Evo Morales, who was present at the signing ceremony in eastern Santa Cruz city along with Gujral and Empresa Siderurgica president Walter Chavez.
Morales said the agreement was crucial for the development of Bolivia's eastern region.
The joint exploitation agreement was the culmination of what Morales called "very tough" negotiations begun in June 2006.
The iron deposits to be exploited are located on Mt. El Muntun, 27 kilometres (17 miles) from Puerto Suarez, near the border with Brazil. It is estimated to hold 40 billion tons of iron and 10 billion tons of magnesium.
The agreement calls for a 1.5-billion-dollar investment by Jindal in the first five years of the project, followed by 2.1 billion during the estimated 40 years it will take before the mine is exhausted.
The talks were "a long process of discussions involving technicians from different branches of the executive who boosted Bolivia's position" in the deal, Mining Minister Alberto Echazu said yesterday.
"The work is done. We've waited more than 50 years for this," said Bolivian President Evo Morales, who was present at the signing ceremony in eastern Santa Cruz city along with Gujral and Empresa Siderurgica president Walter Chavez.
Morales said the agreement was crucial for the development of Bolivia's eastern region.
The joint exploitation agreement was the culmination of what Morales called "very tough" negotiations begun in June 2006.
The iron deposits to be exploited are located on Mt. El Muntun, 27 kilometres (17 miles) from Puerto Suarez, near the border with Brazil. It is estimated to hold 40 billion tons of iron and 10 billion tons of magnesium.
The agreement calls for a 1.5-billion-dollar investment by Jindal in the first five years of the project, followed by 2.1 billion during the estimated 40 years it will take before the mine is exhausted.