Identifier
Created
Classification
Origin
07LAPAZ136
2007-01-19 20:38:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:
MUTUN NEGOTIATIONS DRAG ON, DESPITE REPORTS OF NEW
how-toVZCZCXYZ0001 RR RUEHWEB DE RUEHLP #0136 0192038 ZNR UUUUU ZZH R 192038Z JAN 07 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC 2116 INFO RUEHAC/AMEMBASSY ASUNCION 6465 RUEHBO/AMEMBASSY BOGOTA 3788 RUEHBR/AMEMBASSY BRASILIA 7666 RUEHBU/AMEMBASSY BUENOS AIRES 4915 RUEHCV/AMEMBASSY CARACAS 2157 RUEHPE/AMEMBASSY LIMA 2245 RUEHMD/AMEMBASSY MADRID 3268 RUEHMN/AMEMBASSY MONTEVIDEO 4351 RUEHNE/AMEMBASSY NEW DELHI 0098 RUEHQT/AMEMBASSY QUITO 4797 RUEHSG/AMEMBASSY SANTIAGO 9389 RUEHUB/USINT HAVANA 0092 RHMFIUU/HQ USSOUTHCOM MIAMI FL RUMIAAA/USCINCSO MIAMI FL RHEGGTN/DEPT OF ENERGY GERMANTOWN MD RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEHC/DEPT OF INTERIOR WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 000136
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
ENERGY FOR SDAY AND SLADISLAW
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PGOV BL
SUBJECT: MUTUN NEGOTIATIONS DRAG ON, DESPITE REPORTS OF NEW
BIDDERS
REF: A. 06 LA PAZ 3379
B. 06 LA PAZ 2598
UNCLAS LA PAZ 000136
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
ENERGY FOR SDAY AND SLADISLAW
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PGOV BL
SUBJECT: MUTUN NEGOTIATIONS DRAG ON, DESPITE REPORTS OF NEW
BIDDERS
REF: A. 06 LA PAZ 3379
B. 06 LA PAZ 2598
1. (SBU) Mutun contract negotiations continue, despite
January 19 press reports of new bidders. Bolivian Minister
of Mining Jose Dalence reportedly said the GOB was looking
for "better" offers, after repeated delays in signing a
joint-venture contract allowing India's Jindal Steel and
Power to develop Mutun, one of the world's largest iron ore
deposits (reftels). Dalence added that the GOB had received
visits from (unnamed) Indian and Chinese companies with "much
more important" offers.
2. (SBU) India's honorary consul in Bolivia, acting as
Jindal's local representative, declared the reports false,
telling Econoff January 19 that he was unaware of other
interested parties. He said discussions with GOB officials
would resume January 23 and expressed hope of resolving the
last "two or three" issues within a few weeks.
3. (SBU) Comment: The principal outstanding disputes appear
to center on profit sharing and natural gas supply and
prices. GOB officials rejected Jindal's offer of a 50/50
profit split and demanded up to 68 percent of profits, while
Jindal questioned the GOB's ability to meet gas supply
commitments and objected to proposed gas prices, arguing that
the GOB initially agreed to higher subsidies. Details remain
unclear, thanks largely to the Indian consul's limited
understanding of the negotiations and the continuing absence
of a Jindal technical team. Given the discussions' repeated
set-backs, it seems increasingly unlikely the two sides will
sign a contract in the near term, if at all. End comment.
GOLDBERG
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
ENERGY FOR SDAY AND SLADISLAW
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PGOV BL
SUBJECT: MUTUN NEGOTIATIONS DRAG ON, DESPITE REPORTS OF NEW
BIDDERS
REF: A. 06 LA PAZ 3379
B. 06 LA PAZ 2598
1. (SBU) Mutun contract negotiations continue, despite
January 19 press reports of new bidders. Bolivian Minister
of Mining Jose Dalence reportedly said the GOB was looking
for "better" offers, after repeated delays in signing a
joint-venture contract allowing India's Jindal Steel and
Power to develop Mutun, one of the world's largest iron ore
deposits (reftels). Dalence added that the GOB had received
visits from (unnamed) Indian and Chinese companies with "much
more important" offers.
2. (SBU) India's honorary consul in Bolivia, acting as
Jindal's local representative, declared the reports false,
telling Econoff January 19 that he was unaware of other
interested parties. He said discussions with GOB officials
would resume January 23 and expressed hope of resolving the
last "two or three" issues within a few weeks.
3. (SBU) Comment: The principal outstanding disputes appear
to center on profit sharing and natural gas supply and
prices. GOB officials rejected Jindal's offer of a 50/50
profit split and demanded up to 68 percent of profits, while
Jindal questioned the GOB's ability to meet gas supply
commitments and objected to proposed gas prices, arguing that
the GOB initially agreed to higher subsidies. Details remain
unclear, thanks largely to the Indian consul's limited
understanding of the negotiations and the continuing absence
of a Jindal technical team. Given the discussions' repeated
set-backs, it seems increasingly unlikely the two sides will
sign a contract in the near term, if at all. End comment.
GOLDBERG