JSPL says most issues resolved in Bolivia

In an exclusive interview with CNBC-TV18, Jindal Steel and Power Limited’s Director Mr Sushil K Maroo, said JSPL had started iron our mining in Bolivia. He told “Though most issues have been resolved now, discussions with the Bolivian government to set up pallet plant are on.”

Here is a verbatim transcript of the exclusive interview with Mr SK Maroo on CNBC-TV18. Also watch the accompanying video.

Q – Can you give us some more clarity on what’s going on with the Bolivian mines? What exactly is the situation there?

A – The work is going on in Bolivia mines. We have started iron ore mining work and we are discussing with the government about plans, which we want to work and develop the mine, set up a pellet and a DRI plant. Those discussions were conducted in the past and we have zeroed down on all those things. It’s a big project and it will take its own time. In a country, where such plant is coming up for the first time—it takes a little time to educate people and the government. So things are going on there.

Q – There have been some reports quoting the Bolivian mining minister suggesting that you had asked for some changes in the contract and they have rejected that proposal. Can you give us some clarity there?

A – In a big contract, there are some changes required at some point of time. We were in discussions with the government one some minor changes in the contract about timing and quantity and all that for setting up a steel plant. But we had discussions with the government and finally everything has been settled there. We are proceeding as per contract.

Q: The criticism is quite scathing though because we understand that the mining minister has said that JSPL has proposed modifying the contract to reduce the quantity and quality of steel production. How exactly has this been resolved by you and the Bolivian government?

A: When we were planning to set up a steel plant, we were discussing with them about setting up power plants and grid support etc, and for that purpose we wanted to make some changes in the way we manufactured the steel. So we were doing those kinds of discussions with the government over there. There were a lot of press reports coming in from Bolivia because people were making those kinds of statements, but since there were some detailed discussions that we had with the Bolivian government and with their expert team also finally all those have been resolved now.

Source: Moneycontrol


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