El Mutún
Encyclopedia
El Cerro Mutún is the world's largest iron ore deposit. Located in the Germán Busch Province
in the Santa Cruz Department
of Bolivia
, near Puerto Suárez
, it extends across the border into Brazil
, where it is called the Serrania de Jacadigo. Also known as the "Serrania Mutún", it has an area of about 75 square kilometers. Its estimated reserves are about 40.205 billion (40.205 × 109) tons of iron ore of 50% iron, mainly in hematite
and magnetite
form, and in lesser quantities in siderite
and manganese
minerals. This can be compared with an estimate of the total world reserves of iron ore: 800 billion tons of crude ore containing more than 230 billion tons of iron.
's third largest steel
manufacturer, Jindal Steel and Power Limited, signed a contract with the Bolivian government to exploit the El Mutún iron ore deposit. According to the contract, Jindal would invest US$ 1.5 billion initially and an additional US$ 2.5 billion over the next eight years. This is the single largest investment by an Indian firm in Latin America. By September 2011, Jindal had obtained clearance for the project from the EIA and had hired an engineering consultant for FEED work. The project is expected to create 6,000 jobs directly and another 15,000 indirectly.
Jindal Steel will setup an integrated 1.7 MTPA steel plant, a 6 MTPA sponge iron plant, a 10 MTPA iron ore pellet plant and a 450 MW power plant. The project is expected to generate US$200 million in revenues for the Bolivian, equivalent to 5% of its current revenue. According to the Bolivian government, the Jindal complex will generate more than 21,000 jobs. As of 2009, Jindal had only invested US$20 million on the Mutun project due to difficulty in securing natural gas supplies from the Bolivian government for the 450MW power plant and ore smelting process.
An editorial in La Jornada
alleged that contrary to contract terms, Jindal was mostly interested in extracting iron ore concentrates and exporting the raw material for further processing at its plants in India.
in El Mutún. However, the project was blocked by Bolivian president Evo Morales
because of environmental concerns
; instead of using natural gas
available from a pipeline 20 km away, vegetable carbon was to be used for the foundry, demanding 45 hectare
s a day of Amazon
ian wood. Despite this, EBX started working anyway before obtaining its licence, under the name of MXX. The Bolivian Ministry of Defence declared that "various irregularities and constitutional violations" had been observed. On April 19, 2006, the Bolivian army freed three government ministers who had been taken hostage by villagers demanding the immediate opening of all EBX's installations. By 2007, the Bolivian government had expelled EBX from the Mutun region.
Germán Busch Province
Germán Busch is a province in the Santa Cruz Department, Bolivia. Most of the surface is covered by the Pantanal, the largest wetland area in the world.-History:...
in the Santa Cruz Department
Santa Cruz Department
Santa Cruz, with an area of 370,621 km², is the largest of the nine constituent departments of Bolivia. In the 2001 census, it reported a population of 2,029,471. The capital is the city of Santa Cruz de la Sierra. The state is one of the wealthiest states in Bolivia with huge reserves of...
of Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
, near Puerto Suárez
Puerto Suárez
Puerto Suárez is an important inland river port and municipality in Santa Cruz Department, Bolivia. It is located 10 km west of the border with Brazil.-Location:...
, it extends across the border into Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, where it is called the Serrania de Jacadigo. Also known as the "Serrania Mutún", it has an area of about 75 square kilometers. Its estimated reserves are about 40.205 billion (40.205 × 109) tons of iron ore of 50% iron, mainly in hematite
Hematite
Hematite, also spelled as haematite, is the mineral form of iron oxide , one of several iron oxides. Hematite crystallizes in the rhombohedral system, and it has the same crystal structure as ilmenite and corundum...
and magnetite
Magnetite
Magnetite is a ferrimagnetic mineral with chemical formula Fe3O4, one of several iron oxides and a member of the spinel group. The chemical IUPAC name is iron oxide and the common chemical name is ferrous-ferric oxide. The formula for magnetite may also be written as FeO·Fe2O3, which is one part...
form, and in lesser quantities in siderite
Siderite
Siderite is a mineral composed of iron carbonate FeCO3. It takes its name from the Greek word σίδηρος sideros, “iron”. It is a valuable iron mineral, since it is 48% iron and contains no sulfur or phosphorus...
and manganese
Manganese
Manganese is a chemical element, designated by the symbol Mn. It has the atomic number 25. It is found as a free element in nature , and in many minerals...
minerals. This can be compared with an estimate of the total world reserves of iron ore: 800 billion tons of crude ore containing more than 230 billion tons of iron.
Jindal Steel
In 2007, IndiaIndia
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
's third largest steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
manufacturer, Jindal Steel and Power Limited, signed a contract with the Bolivian government to exploit the El Mutún iron ore deposit. According to the contract, Jindal would invest US$ 1.5 billion initially and an additional US$ 2.5 billion over the next eight years. This is the single largest investment by an Indian firm in Latin America. By September 2011, Jindal had obtained clearance for the project from the EIA and had hired an engineering consultant for FEED work. The project is expected to create 6,000 jobs directly and another 15,000 indirectly.
Jindal Steel will setup an integrated 1.7 MTPA steel plant, a 6 MTPA sponge iron plant, a 10 MTPA iron ore pellet plant and a 450 MW power plant. The project is expected to generate US$200 million in revenues for the Bolivian, equivalent to 5% of its current revenue. According to the Bolivian government, the Jindal complex will generate more than 21,000 jobs. As of 2009, Jindal had only invested US$20 million on the Mutun project due to difficulty in securing natural gas supplies from the Bolivian government for the 450MW power plant and ore smelting process.
An editorial in La Jornada
La Jornada
La Jornada is one of Mexico City's leading daily newspapers. It was established in 1984 by Carlos Payán Velver. The current editor is Carmen Lira Saade...
alleged that contrary to contract terms, Jindal was mostly interested in extracting iron ore concentrates and exporting the raw material for further processing at its plants in India.
Previous mining attempts
In early 2000s, Brazilian company EBX devised a project to create a foundryFoundry
A foundry is a factory that produces metal castings. Metals are cast into shapes by melting them into a liquid, pouring the metal in a mold, and removing the mold material or casting after the metal has solidified as it cools. The most common metals processed are aluminum and cast iron...
in El Mutún. However, the project was blocked by Bolivian president Evo Morales
Evo Morales
Juan Evo Morales Ayma , popularly known as Evo , is a Bolivian politician and activist, currently serving as the 80th President of Bolivia, a position that he has held since 2006. He is also the leader of both the Movement for Socialism party and the cocalero trade union...
because of environmental concerns
Natural environment
The natural environment encompasses all living and non-living things occurring naturally on Earth or some region thereof. It is an environment that encompasses the interaction of all living species....
; instead of using natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
available from a pipeline 20 km away, vegetable carbon was to be used for the foundry, demanding 45 hectare
Hectare
The hectare is a metric unit of area defined as 10,000 square metres , and primarily used in the measurement of land. In 1795, when the metric system was introduced, the are was defined as being 100 square metres and the hectare was thus 100 ares or 1/100 km2...
s a day of Amazon
Amazon Rainforest
The Amazon Rainforest , also known in English as Amazonia or the Amazon Jungle, is a moist broadleaf forest that covers most of the Amazon Basin of South America...
ian wood. Despite this, EBX started working anyway before obtaining its licence, under the name of MXX. The Bolivian Ministry of Defence declared that "various irregularities and constitutional violations" had been observed. On April 19, 2006, the Bolivian army freed three government ministers who had been taken hostage by villagers demanding the immediate opening of all EBX's installations. By 2007, the Bolivian government had expelled EBX from the Mutun region.