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El Mutún development halted - Bolivia

Published: Friday, November 20, 2009 17:00 (GMT -0400)More news from Bolivia

By Harvey Beltrán / Business News Americas


Companies / Entities

* Jindal Steel and Power LimitedImprescindible


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Work at the El Mutún iron ore and steel project in Bolivia's Santa Cruz department has been suspended because Indian company Jindal Steel & Power still has not presented a work plan, an official from the Bolivian mining and metallurgy ministry (MMM) told BNamericas.

"Jindal's delay is partially because of bureaucratic issues but it's also due to the company's lack of interest in moving forward," the official said.

According to the MMM representative, Jindal is using civic and community officials to delay company activities and demand that the government speed up development in order to create jobs.

"Jindal hopes that by doing this the state will give it permission to start operations quickly and figure out the details later, but the government has not agreed to this and is making the company fulfill all regulations," the official said.

The official made this statement despite recent comments by mining director Freddy Beltrán that mining and production work at El Mutún had not been stopped.

Beltrán said Jindal would present its work plan at the end of the year and start production in 2010.

"Simply put, the operation is halted," the MMM official said.

Jindal acquired 50% of El Mutún through a public bidding process in June 2006.

El Mutún is located in a 65km2 area of Santa Cruz's German Busch province and has 40Bt in reserves grading 50% iron ore.