Naveen Jindal promoted Jindal Steel and Power (JSPL) has backed out of talks on investing in a Cameroon iron ore mine owned by Afferro Mining Inc, after finding that the project was not financially viable.
"There is major spending in billions of dollars required to create the required infrastructure and consequently the project may not be financially viable," the New Delhi-based company said in a statement.
It also said that the future potential of the mining licenses are unclear.
Afferro Mining said that although talks have ended with JSPL it is continuing discussions with other parties.
Giving reasons for ending talks, Afferro Mining said, ''Negotiations with JSPL have been terminated as the company believes the indicative offer fundamentally undervalued the company's assets.''
Afferro said it is continuing discussions with AIM-listed International Mining and Infrastructure Corporation (IMIC), which already holds 6.8 per cent stake in the company and with other potential strategic partners.
"Whilst the company has received approaches from a number of interested parties, there can be no certainty that a formal offer will be forthcoming," Afferro Mining added.