2 July 2009
Indian Ore Concessionaire Jindal Steel has financed the $16 million rehabilitation of 100 km roadway between the Mutun iron ore mine and Puerto Busch
| Source: El Deber newspaper |
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Bolivian President Evo Morales called on civilians and social organizations in Santa Cruz department's Puerto Suárez municipality to carry out feasibility studies to decide whether to build a 100km canal or a rail line of equal length to connect the El Mutún iron ore complex, in Puerto Busch, to the Paraguay-Paraná waterway, government news agency ABI reported.
Morales was speaking at the inauguration of works to rehabilitate the 140km Puerto Suárez-Puerto Villarroel highway. These works are expected to cost over US$100mn and will be initially financed by Indian steelmaker Jindal Steel & Power, which is developing the complex in conjunction with the state. The resources will then be paid by the state to the firm once iron ore exports start.
While the highway project is a must for exports to begin, Morales said a future decision must be made on whether to install a railway or a canal to connect the complex with Puerto Busch. The El Mutún deposit holds 40Bt in reserves grading 50% iron. Its capex is slated at US$2.2bn.
The complex is located 27km from Puerto Suárez, in the extreme east near the border with Brazil. |
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