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An Argentine court tells Vale (VALE) it cannot dismantle its Rio Colorado potash project, which...

An Argentine court tells Vale (VALE) it cannot dismantle its Rio Colorado potash project, which the Brazilian miner suspended last week saying it was no longer viable. Vale says the $6B project has been hit by soaring costs due to Argentina's rampant inflation and controlled exchange rate, in a dispute that threatens to spark trade tensions between South America's two largest economies.
Comments (4)
  • unclemike7849
    , contributor
    Comments (157) | Send Message
     
    Argentina is self-destructing under their socialist government which has already stolen $6B worth of oil properties from Respol (sp?), Spain's national oil company. They will eventually go up in smoke as they did back in the eighties because of their policies, greed, and inability to do the right things themselves. I don't believe this event will effect Vale any more than their current loss on the potash mine.
    22 Mar 2013, 12:02 PM Reply Like
  • Shangha1
    , contributor
    Comments (33) | Send Message
     
    What were the court's reasons?
    22 Mar 2013, 12:51 PM Reply Like
  • Losmezas
    , contributor
    Comments (6) | Send Message
     
    You cannot change the rules right in the middle of the project, just because you dislike the scenario (which your projections showed rosy and now it seems that you find some thorns and the worldwide market for core and steel products are in a slump). if you forfeit, you probably will lose something! I guess.
    22 Mar 2013, 01:49 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3079) | Send Message
     
    If the Argentine government thinks this project is viable, then they should buy it from Vale and try to run it. There is no reason for Vale to keep dumping money into a losing venture.
    22 Mar 2013, 03:06 PM Reply Like
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