Bolivian Presidents Sign Law Allowing Mining Of El Mutun Deposit For Iron

La Paz, Bolivia (AHN) - Bolivian President Evo Morales signed over the weekend a law allowing a joint venture to mine the El Mutun deposit for iron. The deposit is located in Puerto Suarez. The law legalizes the contract inked on July 2007 by Jindal Steel and Power Limited of India and state-owned steel company Esem.

The law allows the joint venture to explore and mine 50 percent of the deposit. The project requires a $2.1 billion investment over 8 years where a steel plant will be built capable of producing 1.7 million tons per year of sponge iron and 1.4 million tons of rolled steel.

Once operational by 2012, Bolivia is expected to earn at least $220 million annually from the joint venture by an annual production of 1.5 million tons of steel products and iron concentrates. It is estimated to generate at least 4,600 jobs.

The deal is the biggest single foreign investment in Bolivia, which owns one of the world's biggest iron ore deposits. El Mutun is near the Brazilian boundary. Estimates place the iron-ore reserves covering 23,2 square miles (60 square kilometers) at 40 billion tons of medium-grade quality iron.

The area also has magnesium and limestone deposits.