The South Australian government has expressed confidence that the sale process for the Whyalla steelworks will maintain its integrity despite an Indian court summoning the chair of one of the shortlisted bidders, Naveen Jindal of Jindal Steel, over an alleged coal mining scam.
Jindal Steel is competing with Queensland coal company M Resources to purchase the stricken Whyalla steelworks, with a final decision expected later this year. Naveen Jindal has been summoned to appear before a Delhi court on July 17, following a lengthy investigation by India's Central Bureau of Investigation into alleged irregularities in the allocation of coal licences in the central Indian state of Chhattisgarh.
A spokesperson for Jindal Steel stated the company "has always adhered to applicable laws and regulations, as we would outline to any court hearing," adding that "the matter referred to is sub judice, and it would not be appropriate to comment further at this stage."
South Australian Energy and Mining Minister Tom Koutsantonis said he could not comment on the legal matters in India but described Mr. Jindal's work as "first class." He also noted that no decision had yet been made on the steelworks' sale and that the two bidders were "very difficult to decide between."
The South Australian government reiterated its confidence in the sale process despite the ongoing court case. Meanwhile, Nicola Centofanti has called on the government to ensure due diligence before signing any contracts.
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