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.