By Eliana Raszewski and Walter Bianchi
BUENOS AIRES, Sept 3 (Reuters) – Argentine potash mine PRC will open a young on Monday for funding banks to assist discover a associate to restart operations, a high firm official mentioned, a decade after Brazil’s Vale shelved the venture when costs crashed for the crop nutrient and the agency clashed with the nation’s authorities over tax breaks.
The state-controlled entity PRC, beforehand Potasio Río Colorado, is seeking to restart the venture with new exterior funding that might seemingly be round $1-1.2 billion, the corporate’s common supervisor Emilio Guiñazú advised Reuters.
The most definitely end result can be to provide 1 million to 1.5 million tonnes of potash per 12 months. The federal government of Canada, the No. 1 producer of potash at about 21 million tonnes yearly, says the worldwide market is 66 million tonnes per 12 months.
The funding may rise to as excessive as $5 billion, nonetheless, Guiñazú mentioned, relying on the scope of the venture at one of many world’s largest potassium deposits in western Mendoza province. Costs of potash have climbed over the past 12 months on excessive meals costs.
Guiñazú mentioned that the mine hoped to have chosen an funding financial institution by the top of October to guide the method to identification a associate for the venture. He hoped to have the brand new associate on board inside round 18 months.
In an announcement from the province, which took management of the mine earlier this 12 months after an settlement with Brazilian miner Vale, it mentioned it had been figuring out potential companions excited by “investing, associating or buying” the venture and had spoken with a variety of unnamed firms.
(Reporting by Eliana Raszewski; Modifying by Adam Jourdan and David Gregorio)
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