India's JINDAL STEEL & POWER LTD disclosed on August 23rd that at the international tribunal concerning El Mutun iron ore project in Bolivia, the International Chamber of Commerce headquartered in Paris ordered the Government of Bolivia to pay total US$22.5 million including interest to JINFDAL related to the illegal encashment by Bolivia of JINDAL's bank guarantee.|
El Mutun iron ore mines is said to be the world largest one with a deposit of approx. 40 million tons of iron ore located in eastern Bolivia near Brazil and Paraguay. JINDAL concluded the investment contract with Bolivia government and developed the project. However, the Company terminated the contract and withdrew from the project in July 2012 because it could not procure the site smoothly and because the Bolivia government illegally encashed the bank guarantee deposited by JINDAL.