Monday, May 4, 2009

Tata Shelves Liberia Iron Ore Bid

Tata Steel said on Monday that it has shelved its plans to re-bid for the USD 1.6 billion Western Cluster iron ore project in Liberia.

"The company has decided not to participate in the re-bid for the property," a Tata Steel spokesperson told the Press Trust Of India.

Asked about the reasons for it, he said there was nothing specific.

Industry sources, however, said the unpleasant experience the steel major had during the initial course of bidding for the Western Cluster mineral assets when they were charged of "acts of impropriety", have culminated into its walkout.

In 2008, the world's sixth largest steel producer was barred from bidding for the project for its alleged acts of impropriety, as reported in a section of the media. The Liberian government later absolved the company of the charges and allowed it to re-bid.

In response to Tata Steel&aposs letter of remonstration against media reports, Liberia's Ministry of Justice informed that investigations did not show the company's involvement in acts of impropriety as these have not been substantiated by the investigation panel of the country&aposs Public Procurement and Concession Commission.

The Western Cluster project consists of three deposits and two non-functional mines. Tata Steel was considering to acquire the property to feed the iron ore requirement of its European arm Corus.

Source: Indopia

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