Jindal Steel & Power began the week with a slump at the bourses on Tuesday after the steel and power giant firmly refuted claims of any financial dealings or investments in Venezuela. This clarification comes amidst swirling rumours suggesting the company’s deepening ties with the South American nation.
What Happened? Rumours had been rife about Jindal Steel & Power’s potential collaboration with the Venezuelan government to manage CVG Ferrominera Orinoco, the country’s largest iron ore production facility.
According to a Bloomberg report, such a partnership would have marked a significant international foray into Venezuela’s predominantly state-owned sectors, especially at a time when the nation’s metallurgic and mining industries are grappling with the repercussions of US sanctions imposed in 2019.
However, Jindal Steel & Power’s outright denial has thrown these speculations into a whirlwind of doubt. The company remains tight-lipped about its future investment strategies, both in Venezuela and globally.
Rocky Road: It’s worth noting that Jindal Steel & Power has had its fair share of controversies. From facing scrutiny by Indian authorities over coal block allocations to disagreements with the Bolivian government over iron deposit developments, the company’s journey has been anything but smooth.
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Price Action: Jindal Steel & Power shares were trading 1.13% lower at ₹693.40 on Tuesday shortly after markets opened for trading.
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