India’s Jindal Steel and Power has started work on its $2.1bn iron ore mine and steel project in eastern Bolivia following long delays.

The company began construction in a ceremony at the El Mutun site near the Brazilian border.

Mining Ministry official Hector Cordoba said the project will help the country produce steel until 2014.

The 40-year contract allows Jindal to mine half of the El Mutun site, which is expected to contain some of the world’s largest reserves of iron ore, reports Reuters.