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Liberia disqualifies Tata Steel mining bid

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  • It is not just Singur that is bothering the Tatas. The Indian conglomerate has run into trouble in distant Africa with Liberia disqualifying the group flagship Tata Steel’s bid for a mine with deposits of 500 million tonne and requiring $1 billion in investment for allegedly violating norms. But Tata Steel has denied the charges and demanded a clarification from the Liberian government.

    Reports quoting Liberian Information Minister Lawrence Bropleh said the African nation’s government disqualified Tata Steel based on reports that the initial bidding process could have been compromised by “external influence or impropriety”. Tata Steel and South Africa-based Delta Mining have been barred from the second round of bidding for the Western Cluster iron ore project in Liberia.

    “...Tata Steel wishes to point out that it is completely un-aware of and not connected to whatever alleged ‘external influence and improprieties’ the government has referred to... It has been upfront and transparent in its dealings with relation to the bidding process. It is unaware in what way this led to use of external influence and improprieties to influence the bidding process. Tata Steel is taking up these issues with the Government of Liberia to seek clarification in this regard,” the world’s cheapest steel maker said today in a statement.

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    “Moreover, Tata Steel’s bid was rated very favourably in terms of technical, financial and social commitment parameters by international consultants, Deloitte & Touche in their report to the Government of Liberia (which is now available on a media website),” the company said and pointed out that the Liberian government’s own due diligence report done by Deloitte & Touche has pointed out that it is rated very highly in the entire world with respect to Corporate Social Responsibility and ethical business practices.

    “Moreover, the company’s representation in Liberia was handled though a Liberia-based consultancy firm, as it has no office or representative in that country. Tata Steel appointed the firm to represent the company in the bidding process and also advice it on local issues and sentiments related to community and other initiatives. This is a normal business practice and the relevant government agencies were kept informed,” it argued.

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