After the uncertainty caused by the Argentinian nationalization of YPF, the Brazilian miner Vale Do Rio Doce will take part in the Potasio Rio Colorado project (PRC) to extract potassium from Malargüe, Mendoza.
Cristina Kirchner made the announcement yesterday. In addition, during a ceremony held in the Casa Rosada, the Argentinian president signed the contract for building 350 kilometres of railway to connect Río Negro and Neuquén, and 120 kilometres of power lines over the Colorado River.
The megaproject will make the production of 4.3 million tons of potassium possible. Potassium is “one of the three essential nutrients for agriculture”, said Cristina Kirchner. The Brazilian mining company will invest 29,500 million pesos and 12.000 jobs will be created. Besides, the project reinforces the official policy of supporting mining.
Vale do Rio Doce’s president, Murilo Ferreira, was excited about the project. This is also a strategic investment for Brazil, since the potassium extracted will be used to produce fertilizers, which will help Brazil grow as a food producer. So far, Brazil is the fifth consumer of fertilizers in the world.
