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Jindal Steel signs MoU with Liberia Government

Wednesday, 11 Sep 2013

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Jindal Steel & Power (JSPL), has inked an MoU with the Government of Liberia for setting up a coal-based power project in the country.

The company plans to develop a 350 MW power plant in two phases each, with 175 MW capacity. It is expected to commence work on the project within six months. However, JSPL has not yet finalised the exact location for the unit. The logistics for sourcing coal, and the availability of water - the other crucial element for the project - will eventually determine the cost. The selection of site will influence the cost of both the factors. JSPL will have to source thermal coal for the proposed project from its own interests in Africa.

The project will be positive for the company's proposed iron ore mining project in the country. For the iron ore mining project, Jindal Steel & Power is currently in negotiations with Liberian authorities for the iron ore assets there. It proposes to acquire the exploration and mining rights of the Wologisi assets, located in Lofa County.