Argentina's Mendoza province seeks investors for US$2.5bn potassium project

Bnamericas Published: Monday, October 24, 2022
Argentina's Mendoza province seeks investors for US$2.5bn potassium project

Mendoza’s natural resource company PRC and Swiss bank UBS are seeking investors for the US$2.5bn Río Colorado potassium project 200km south of the Argentine province’s Malargüe city.

The 1.5Mt/y project is in an advanced stage and expected to start with 200,000t/y from 2023.

Investments so far went to infrastructure and facilities.

As a so-called plug and play asset, “the money arrives and the project starts. There are no new permits, no laws need to be changed. The project has all its papers absolutely in order,” the CEO of PRC, Emilio Guiñazú, told the Club Minero podcast. He highlighted that previous project partners included Minera TEA, Rio Tinto and Brazil’s Vale.

This last owner abandoned the project in 2012-13 at the onset of national crisis and as international potassium prices collapsed. Problems related to rail logistics added to the decision, Guiñazú said.

Río Colorado has 300Mt of proven and certified reserves, while solid price forecasts help financial sustainability.

In 2021, Vale and Mendoza agreed on an asset transfer. Overall, 78 wells were executed, which are protected by anti-corrosion systems, according to the project prospect.

The nearest road links are national route 40 and provincial route 189, which, however, require rehabilitation to ease logistics, Guiñazú said. "The project looks very attractive, and we are leaving ample room for potential investors to work and further improve the project equation."

Potassium prices rose after Russia's invasion of Ukraine. Although projected to fall slightly, they are expected to remain between US$400/t and US$600/t in the coming years.

"The market is there, prices are going to remain high, not at the level they are today, because it is bad for the world and we hope that the war in Europe will be resolved as quickly as possible. But even so, we see prices of over US$400/t," Guiñazú said.

Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: Mining & Metals (Argentina)

Get critical information about thousands of Mining & Metals projects in Latin America: what stages they're in, capex, related companies, contacts and more.

  • Project: El Fierro
  • Current stage: Blurred
  • Updated: 4 months ago
  • Project: Conserrat
  • Current stage: Blurred
  • Updated: 4 months ago
  • Project: Paso
  • Current stage: Blurred
  • Updated: 5 months ago
  • Project: Los Azules
  • Current stage: Blurred
  • Updated: 5 months ago

Other companies in: Mining & Metals (Argentina)

Get critical information about thousands of Mining & Metals companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Imec Ingeniería 360°
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
  • Company: Cerro Vanguardia S.A.  (CVSA)
  • The mining company Cerro Vanguardia, S.A. (CVSA), based in Argentina, is engaged in the exploration, mining and processing of gold and silver in the mining concession Cerro Vang...
  • Company: Posco Argentina S.A.U.  (Posco Argentina)
  • Posco Argentina, a local subsidiary of the global steel producer based in the Republic of Korea, owns the comprehensive lithium project Sal de Oro, located in the Salar del Muer...
  • Company: Siemens S.A.  (Siemens Argentina)
  • Siemens Argentina is the local unit of German electrical engineering and electronics firm Siemens. Siemens has been present in the country since 1857 and has offices in Buenos A...
  • Company: Minera del Altiplano S.A.  (MdA)
  • Argentine firm Minera del Altiplano S.A. (MdA), a subsidiary of US-based chemical manufacturer FMC Corporation, is engaged in the production of lithium derivatives, such as carb...
  • Company: Eramine Sudamérica S.A.  (Eramine Sudamérica)
  • Eramine Sudamerica S.A. (Eramine), a subsidiary of French mining company Eramet, is focused on the development of lithium resources in Argentina. The company was founded in 2010...