India-based steelmaker Jindal Steel & Power Ltd. announced Tuesday that it has exited its contract to invest $2.1 billion in an iron ore mine and steel making facility in Bolivia. The decision comes after months of tense negotiations and ultimatums between Jindal Steel and the Bolivian government. Jindal also said that suing the Bolivian government for breach of contract is also under consideration.
Jindal Steel explained that because the Bolivian government was not willing to supply the 10 million cubic meters per day of gas needed to run the facilities within 180 days of signing the contract, it was forced to terminate its contract with the government. The Bolivian government would only provide 2.5 million cubic meters per day beginning from 2014.