Liberia wants Tata Steel to rebid for $1.5-billion iron ore project

04 December 2008

After canceling the contract awarded to Tata Steel and Delta Mining Consolidated, the Liberian government has called on Tata Steel to once again bid for the $1.5-billion Western Cluster iron ore project.

Tata Steel has now received an invitation from the Liberian Government asking it to participate in the bidding process for the Western Cluster iron ore project, a development fits in with Tata Steel's strategy of focusing on raw material security.

The Liberian government had cancelled the contract won by Tata Steel and Delta Mining Consolidated and had debarred both the companies from re-bidding in September citing acts of violation in the bidding held for the mines, which were given provisionally to Delta Mining Consolidated.

Now Tata Steel has been invited by the Liberian government to take part in the bidding process although Delta Mining Consolidated may dispute the Liberian governments ruling of canceling the iron-ore project contract.

International consultancy firm, Deloitte & Touche had given the Liberian government a report that favoured Tata Steel on grounds of the company's financial strength, technical expertise and strong social values and giving the contract to Delta Mining invited criticism from all quarters of the industry.

The Liberian government then barred both companies from entering the re-bidding process saying the original bid may have been influenced by external factors.

Delta Mining Consolidated, a South African mining company, has already lodged a complaint with Liberia's Public Procurement and Concessions Commission saying that the government's decision was based on reports unsupported by any evidence.