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Pulp mill frays Argentine-Uruguay relations

Author: Jude Webber, Financial Times, Published on: 20 April 2010

The United Nations' highest court rejected Argentina’s claims that the Finnish-owned mill was polluting a jointly-administered river between the two countries, and thus [that it can] continue operating... In a ruling which cannot be appealed, the International Court of Justice on Tuesday found that Argentina had presented insufficient proof of contamination... The court ruled unanimously that Uruguay had violated a joint agreement on the administration of the authorising construction of the $1.2bn pulp mill without consulting Argentina. The mill, built by Botnia..., began operating in November 2007 and is now owned by UPM after an asset swap with Botnia last year... Both countries welcomed the verdict... Romina Piccolotti, a former Argentine environmental secretary, said Gualeguaychú’s protest would continue. “This court won’t end the fight by a whole town,” she said.

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Related companies: Metsä Fibre Oy (formerly Metsä-Botnia) UPM