India’s Jindal Steel and Power will invest $2.1bn in a Bolivian mine project.

As part of a 40-year contract, Jindal will have rights to half the El Mutun site, one of the world’s largest iron ore reserves.

Head of the company’s Andean unit Arvind Sharma said Jindal will invest $1.5bn by 2015, according to Reuters.

He said the company has already invested $20m in the development of the El Mutun site and a further $40m in other projects in the country.

The contract also requires Jindal to develop an integrated steel plant with an annual capacity of 1.7 million tons.

The El Mutun mine in eastern Bolivia, near the border with Brazil, has estimated iron ore reserves of more than 40 billion tons.

Earlier, Bolivian Mining Minister Jose Pimentel said Jindal is not fulfilling its contract with the Bolivian state and can consider changing the terms of the deal signed in 2007.