In an official statement, Jindal Steel and Power (JSPL) said it does not want to buy Afferro mines iron ore in Canada because of several drawbacks with the mine.
According to JSPL, The deal with Afferro Mining did not materialise, because much of the proven iron ore reserve at the Afferro site in Cameroon has low-grade magnetite for which beneficiation reports have not been satisfactory.
Initial reports suggest that beneficiation to the desired percentage would be possible at high costs and low yields, thus reducing the overall potential of the deposit.
Further, a new mining code in Cameroon, financial unavailability and lack of infrastructure (road, rail, port and power) make the mine unattractive, the firm said.
Following the end of the mutual exclusivity period between both the companies without any conclusive outcome, JSPL withdrew discussions of acquisition for the Afferro Mining site in Cameroon, the release said.
The statement also said that JSPL shared its intent with Afferro Mining and asked them to inform their stock exchanges accordingly about the withdrawal of our intent, as they had earlier informed them about being in talks with JSPL.
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