Vale SA and the Argentine province of Mendoza have announced a plan for Vale’s Rio Colorado potash project which was suspended in 2013, according to Bloomberg. Vale and Argentine officials announced the agreement at an investment forum in Buenos Aires Sept. 14.
The Argentine Mining Ministry is expected to conduct a six-month feasibility study into the potential production of 1.4 million mt/y. In addition, Argentina, Mendoza and Vale will all seek out investors for the project. Should none be found, the agreement can be terminated.
Vale had announced talks with the government earlier this year. The company is heavily in debt and is seeking to shed non-core assets.
Chemtrade Logistics Income Fund, Toronto, said Sept. 14 that on Sept. 6 it made a proposal to acquire Calgary-based Canexus Corp. for C$1.45 per common share in cash, which it said was an approximate 18 percent premium to the Sept. 13 closing price of Canexus common shares of $1.23.
On Sept. 12, Canexus rejected Chemtrade’s proposal without engaging in any discussions with Chemtrade, and subsequently announced its intention to complete a $75 million note offering on Sept. 13, 2016. Chemtrade said the note offering, if completed, includes terms that would negatively impact Canexus shareholder value on an acquisition of Canexus.
Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. It has four plants in Canada and two at one site in Brazil.
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