Bolivian court to hear appeal against ICC ruling on El Mutún

Friday, October 17, 2014

A court in Bolivian city Santa Cruz has agreed to hear an appeal by state steel company Empresa Siderúrgica del Mutún (EMS) of a ruling by the arbitration court of the International Chamber of Commerce (ICC) in a dispute with Indian steelmaker Jindal Steel & Power.

The ICC rejected an appeal filed by EMS against the August ruling that ordered the company to pay Jindal US$22.5mn, plus accrued interest, as compensation for illegally cashing a US$18mn guarantee linked to Jindal's investment in the El Mutún iron ore mine.

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"The arbitration court violated Bolivia's laws by denying ESM the right to defense," the mining ministry said in a release.

Jindal acquired rights in 2007 to develop the Santa Cruz department deposit but pulled out of Bolivia in 2012, citing lack of support from the government of President Evo Morales. Jindal said the government denied access to land where the project was to be developed.