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Article

28 Jun 2011

Author:
Reuters

Mendoza province suspends $4.6 bln Vale project, Argentina

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Tensions between the Brazilian mining giant Vale and the provincial governments of Mendoza and Neuquén…In March this year, Vale said it was complying with a request from the government of Mendoza to provide information within 30 days on the progress of the company's Rio Colorado potash project and the hiring of local contractors and workers…In April 2011, the company pulled out of Rincon de Los Sauces (…in Neuquén) after protests and road blocks and demands for the hiring of local contractors and workers…In response, the government of Neuquén broke relations with the company and withdrew 32 mining concessions previously granted to Vale…Now…the government of Mendoza has suspended the project, claiming Vale has not complied with previous agreements and requirements to hire and buy supplies locally…