The Liberian government has decided to disqualify Tata Steel from a relaunched bid for the $ 1.5 billion Western Cluster Iron Ore Deposits on grounds of 'acts of violation' in an earlier bidding process, according to international reports. The Liberian government has alleged 'acts of violation' by South Africa-based Delta Mining Consolidated and India's Tata Steel in the earlier bidding, which may have been compromised by external influence or impropriety.
Tata Steel today issued a statement that the company has not had the benefit of any formal notification from the ministry of lands, mines and energy of Liberia.
According to reports, the proposed start of production in 2017 stated in Tata Steel's proposal was also one of the government's concerns, in addition to what the statement had referred to as 'external influence and improprieties' in the bidding process.
On the timeline for starting production, Tata Steel said that based on its experience in greenfield mining, the company was convinced that a project involving exploration and development of infrastructure such as that of the Western Cluster was likely to take about eight years.
Subsequently, the company had also informed the Liberian government that if desired, they could advance the production date by two years.
Moreover, Tata Steel's bid was rated favourably by international consultants Deloitte & Touche in its report to the Government of Liberia in terms of technical, financial and social commitment parameters.
Tata Steel also pointed out that it was completely unaware of and not connected to whatever alleged 'external influence and improprieties' the government had referred to.
Tata Steel's representation in Liberia was handled though a Liberia-based consultancy firm as Tata Steel has no office or representative in Liberia. Tata Steel appointed the firm to represent the company in the bidding process and also advise it on local issues and sentiments related to community and other initiatives.
Tata Steel said this was a normal business practice and the relevant government agencies were kept informed. 'Hence, Tata Steel has been upfront and transparent in its dealings with relation to the bidding process. Tata Steel is unaware in what way this has led to use of external influence and improprieties to influence the bidding process,' said the statement.
The Indian steel major further pointed out that the government's own due diligence report done by Deloitte & Touche had pointed out that Tata Steel was rated very highly in the entire world with respect to corporate social responsibility and ethical business practices.
'Therefore, Tata Steel is seriously concerned that its reputation is being tarnished without verification and by mere allegations in media reports. Tata Steel is taking up these issues with the Government of Liberia to seek clarification in this regard,' said the company statement.
The bidding for the Liberian deposits was facing flak from different quarters over the selection of Delta Mining Consolidation, which was placed at the top of the shortlist and a due diligence investigation was undertaken.
