It is learned that Indian steelmaker Jindal Steel & Power ended talks with Afferro Mining Inc after the assessing its iron ore in Cameroon, since Jindal may have to invest $2 billion to build infrastructure for the project.
Instead, Jindal is now in acquisition talks with two mining companies who have mine in Africa, but the targets are not identified yet.
On the other hand, Afferro is now free to talk with other potential buyers, including International Mining & Infrastructure Corp., according to the company's statement.
According to Jindal Steel, it plans to spend US$6.4 billion to enlarge production capacity to 13 million tons by 2015, which depends a lot on supply of iron ore from domestic and overseas mines.