International investors interested in investing in Bolivia would be concerned on the latest move from Bolivian government

PTI reported that 2 employees of Jindal Steel and Power were arrested in Bolivia, where the company had scrapped its USD 2.1 billion project a few days back.

The company's property and equipment at Porto Suarez, where the project was supposed to come up, have also been confiscated.

The arrested local employees were later released by the police. The local government also filed criminal cases against the company employees.

JSPL in a statement alleged that the arrest was harassment and victimization of its employees subsequent to JSPL's termination of contract on July 16, 2012 for investment of USD 2.1 billion in the El Mutun mines in Bolivia".

It said “The Bolivian government has taken recourse to criminal proceedings against company employees and started harassing and victimizing them.”

JSPL said its six Indian employees are still in Bolivia and is making attempts to bring them back considering the scenario there.

It added “We also want that till such a time law takes its course, the Bolivian government must ensure the safety and security of all our employees and assets that legally belong to us.”

The development comes five days after the company terminated its contract to develop El-Mutun iron ore mines there, besides setting up iron ore pellet and sponge iron plants and a steel mill over fuel supply woes.