As we all know rau have signed a letter of intent with the...

As we all know rau have signed a letter of intent with the Bolivian Gov. to explore part of El Mutun.

Here's an article about Jindal Steel. They won the tender to 50% of the area in 06. Is it possible that they may have their contract terminated?

Apparently they have failed on several key milestones, and they treat the local people very poorly. Anything could happen.

Just if they did get the boot, I wonder what rau's positive involvement with the Government and El Mutun could lead to?


Article:

"Delegates from Indian company Jindal Steel & Power will arrive in Bolivian capital La Paz on Wednesday (Feb 17) to decide on the final details for developing the El Mutn iron ore deposit and steel plant in Bolivia's Santa Cruz department.

"Several issues surrounding the project will be decided on in this meeting," an official from the Bolivian ministry of mining and metallurgy (MMM) told BNamericas, without providing further details.

In early February the MMM said that Jindal had until April to present the investment plan for the El Mutn project and have the plan approved.

The government gave Jindal the ultimatum after rejecting its investment plan twice for not fulfilling the terms established in the contract.

According to mining minister Jos Pimentel, the ministry will review the investments that Jindal has made in El

Mutn so far and could cash investment guarantees for US$18mn.

Production should have started last year but was delayed by the lack of investment required under the contract Jindal signed with the Bolivian state.

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

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

The JV contract between state steelmaker Esem and Jindal to develop El Mutn stipulates that US$1.5bn be invested over the first five years in mining the deposit and steel production, and US$2.1bn in total.'

Link:

http://www.bnamericas.com/news/metals/Jindal_executives_arrive_in_La_Paz_to_decide_El_Mutun_fate