Mendoza Province Suspends Vale's Potash Mine Project

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articlenopicBy Shane Romig for FoxBusinessNews.com

Argentina's Mendoza province has suspended Brazilian mining giant Vale SA's (VALE, VALE5.BR) multi-billion dollar Rio Colorado potash mine project after accusations that the company failed to stick to an agreed investment timeline and to hire and buy locally.

"This decision has been taken due to the insufficient information provided with respect to the plan and amount of investment," hydrocarbons sub-secretary Walter Vazquez said in a statement Friday.

"We need data to be able to control and verify the actual compliance with the requirements established under the agreement [with the province] such as the buying of local goods and hiring of local workers," Vazquez said of the massive fertilizer project. "If the mining company comes to Mendoza and doesn't understand this concept, then it shouldn't be doing this kind of project," he said.

The suspension will be lifted once the company comes back into compliance, Vazquez said. Earlier this year, authorities in Mendoza complained that the company had failed to...Read Full Article

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