Brazilian mining heavyweight Vale has come to an agreement with the Argentine government to drop its Rio Colorado potash project.
Articles Tagged "vale"
Here's the story on potash according to Analyst Andrea Rubakovic: The major players are planning for long-term demand by developing brownfield projects, but they're running into hurdles. Meanwhile, juniors are having trouble financing greenfield projects. Does this mean we're in for a global supply pinch? If so, who could be positioned to profit?
Project costs, labor disputes and concerns regarding "national interest" are front and center in the potash market as companies reassess opportunities.
Brazil's Vale SA (NYSE:VALE), mothballed its $5.9-billion Argentina-based Rio Colorado potash venture after suspending work at the project in January.
Reuters reported that Vale, who has been considering suspending production at its Argentinian potash project, expects to hear a response from the government for their tax break demand by February 28.
Bloomberg reported that Vale SA (NYSE:VALE) has been denied the $2-billion tax break that it requested from the Argentinian government after costs for its Rio Colorado potash project rose to unanticipated levels.
Mining Weekly reported that production at Vale's potash mine in Argentina is in danger of being suspended for up to three years as the company struggles with rising costs and is lobbying the government for tax breaks
Mining Weekly reported that Vale is in danger of losing concessions at the $6 billion Rio Colorado potash project in Argentina if they don't provide a new project timeline in the next few days.
With potash contract prices dropping to the lowest level seen in years, the potash sector does not appear ready to rebound just yet.
Mineweb reported that Vale decided to go ahead with the $6 billion Rio Colorado potash project in Argentina, to feed the fertilizer hungry Brazilian markets, despite fears that the massive scale of the project will negatively impact smaller scale projects in the region.