JSL shelves JV project in Indonesia

$1.2-billion (approx Rs 5,640 crore) JV project with PT Antam TBK in Indonesia. JSL had entered into a JV with PT Antam last year to build a 20,000- tonne ferro-nickel plant and 3-lakh-tonne stainless steel slab unit in the country. However, with prices of nickel dipping sharply, the company has decided to drop the project.

Tata Steel not to bid for Liberia iron ore project

Tata Steel has scrapped its plans of re-bidding for the $1.6 billion (approx Rs 7,944 crore) iron ore project in Liberia. As per industry sources, the displeasing experience the company had during the initial course of bidding for the Western Cluster mineral assets when they were charged of "acts of impropriety" is likely to have resulted into shelving its plans. In 2008, the company was barred from bidding for the project for its alleged acts of impropriety, as reported in a section of the media. The Liberia Government later cleared the company of the charges and allowed it to re-bid. The Western Cluster project consists of three deposits and two non-functional mines. Tata Steel was considering acquiring the property to cater to the iron ore requirement of its European arm Corus.

Nepal, India to build 41-km oil pipeline

Nepali Oil Corporation (NOC) and IOC plan to build a 41-km oil pipeline between Raxaul in east Champaran district, Bihar and Amlekhgunj of Nepal. At present, NOC and IOC are preparing the model of the pipeline to facilitate oil supply to Nepal which has been facing petroleum products shortage due to the frequent Terai bandhs in southern Nepal and other strikes since last year.

Mozambique awards mining contract to Tata Steel JV

The Mozambique Government has awarded a mining contract to Tata Steel and its JV partner Riversdale for the Benga coal project in Africa. The proposed mine is likely to yield 20 million tpa of the dry fuel. Tata Steel has a 35 per cent stake in the project besides a secured right for 40 per cent of the produce to feed its Corus facilities in the UK and Europe. The project which will entail an investment of over $800 million (approx Rs 3,960 crore) is likely to begin commercial production in 2010. The contract covers all aspects of proposed development of the mine, including exploration, feasibility, operations, fiscal regime and rehabilitation, among others.

OVL plans investment in Iraq oil block

OVL, the overseas arm of state-owned ONGC, is likely to invest $1.45 billion (approx Rs 7,105 crore) in Block-8 located in the western desert in southern Iraq bordering Saudi Arabia. The service exploration and production contract for Block-8 have been concluded and the agreement is likely to be signed in the next couple of months. The block already has a discovery and is estimated to hold 645 million barrels of inplace reserves, of which 54 million are recoverable. OVL has committed investing $86 million (approx Rs 427.162 crore) in two phases of exploration and $1.45 billion in development of the reserves thereafter. The contract will be a service contract wherein OVL will be paid about 18 per cent rate of return on its investment.

OVL, IOC to invest in Iran gas field

ONGC Videsh Ltd (OVL), Indian Oil Corporation (IOC) and Oil India Ltd (OIL) are planning to invest $4 billion (approx Rs 20,000 crore) in Farzad gas field in Iran in the next 3-4 years. Currently, OVL, IOC and OIL are in the process of preparing a development plan for the gas field which has in place reserves of up to 21.68 trillion cubic feet (Tcf), of which recoverable reserves may be 12.8 Tcf. In September 2008, Iran had approved the commerciality of the discovery.

NTPC in talks with Bhutan Government

NTPC is holding talks with the Bhutan Government for setting up a 600 MW hydel power plant in Bhutan through a JV at an estimated investment of Rs 3,600 crore. Currently, the company is preparing a DPR for the 600 MW Amochu hydro power project which is expected to be ready by early 2011.