New Delhi, July 18 (ANI): India's Jindal Steel and 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.he 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. (ANI)
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