Liberia disqualifies Tata Steel from mining rebid

The government of Liberia has decided to disqualify Tata Steel from a re-launched bid for the $1.5 billion western cluster iron ore deposits on grounds of acts of violation in an earlier bidding process.

The Liberian government has alleged acts of violation by South Africa based Delta Mining Consolidated and Tata Steel in the earlier bidding, which may have been compromised by external influence or impropriety.

On the timeline for starting production, based on its experience in greenfield mining, Tata Steel was convinced that a project involving exploration and development of infrastructure such as that of the Western Cluster was likely to take about eight years.

Subsequently, the company had also informed the government that if desired, they could advance the production date by two years.

Moreover, Tata Steel's bid was rated favourably by international consultants Deloitte & Touche in its report to the Government of Liberia in terms of technical, financial and social commitment parameters.
Sep 19,2008