September 08, 2008

China to pursue other 50% of El Mutun

Bolivian press reported that China's government is ready to sign a letter of intent with the Bolivian government to develop 25% to 50% of the El Mutún iron deposit in Bolivia's Santa Cruz department.

The report noted that a delegation of Chinese businesspeople and representatives from China's state development bank will meet with Mr Evo Morales president of Bolivia to clinch the agreement. The report further added that early this week a delegation from China's development bank is expected to arrive in Bolivia.

Mr Morales signed earlier this month a letter of intent with his Venezuelan counterpart Mr Hugo Chávez to consider forming a mining steelmaking JV to develop 50% of El Mutún.

Jindal Steel and Power signed an agreement in July to invest USD 2.1 billion to develop half of the deposit which is one of the largest in the world.

The Mutun deposit, 1,500 kilometers east of La Paz, near Bolivia's southeastern borders with Brazil, contains 40 billion tonnes of iron ore and 10 billion tonnes of manganese.