Authorities from Mendoza province in Argentina have finalised the selection of a potential $1bn (350.01bn pesos) investor to help revive the development of the Rio Colorado potash mine, reported Reuters, citing Mendoza Governor Rodolfo Suarez.
The move comes more than a decade after Brazilian company Vale abandoned the potash project due to a drop in potash prices at that time and after failing to secure the government’s tax concessions to ease soaring costs linked to inflation.
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Prior to its exit, Vale had already invested $2.2bn at the mine.
This resulted in the completion of 45% of the work at the Rio Colorado project, which includes a potash mine, a new and upgraded railway, and a potash-loading terminal at Bahia Blanca, south-west of Buenos Aires.
Suarez was cited by the news agency as saying on X: “We have finished the bid selection process for the development of the potassium mine in Malargue.”
Final negotiations between the authorities and ‘the most qualified bidder’ will now advance for a contract to develop the Rio Colorado mine.
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By GlobalDataUnder the UBS Group’s advice, the provincial authorities launched a bidding process that initially drew interest from more than 30 national and international companies.
The final winner is expected to invest $1bn at the potash project over a period of five years.
Suarez said: “The reactivation of this project will double the province’s exports.”
The mine is expected to have an annual production of 1.5 million tonnes.
