Vale SAintends to resume operations at its RioColorado potash project in Argentina with an investment of US$1.5 billionin the coming months, Reuters reported April 27.
The company suspendedthe project in 2012, after investing US$2.2 billion, when the government proposedto ax plans for the construction of a railway and port for mineral transport inthe Mendoza province, and then refusedto provide tax benefits to the miner to help counter the effects of Argentina'sinflation and exchange rate.
Vale has discussed a development plan for the project with theprovincial government, which includes projected output of 1.3 million tonnes peryear, a significant reduction from the previous target of 4 million tonnes.
The company added that some investors are already interestedin the project.
"A reduced model will make it easier to attract the investorsneeded to reactivate work," Reuters cited Vale as saying.
Instead of building a railway line, the company now plans touse trucks for transportation. However, details will be finalized after securingfunds for a pre-feasibility study.