Rio de Janeiro — Despite negotiations with Argentine authorities, Vale SA said March 11 that it has informed the Argentinian government that its US$6 billion Rio Colorado potash project in the country will remain suspended. It said in the current macroeconomic environment the economics of the project are not in line with Vale’s commitment to discipline in capital allocation and value creation. It said if the project restarts, preference will be given to the project’s current employees. Vale said it will keep honoring the commitments related to the concessions and searching for alternatives that enhance the economics of the project. The company announced in January that it was suspending the project (GM Jan. 28, p. 10). In the meantime, it has tried to negotiate concessions from the Argentinian government, and has also been seeking partners.
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