
Paraguay signs MOU with Rio Tinto for aluminum smelter
Bnamericas Published: Wednesday, December 26, 2012
Paraguay's government has signed an MOU with Rio Tinto's (LSE: RIO) aluminum product division Rio Tinto Alcan for the installation of a US$4.4bn aluminum smelter in the country. Conditions of the agreement include sustainability and environmental measures, according to a statement on the presidential website. "This is a historic decision because the preliminary agreement, subject to further studies and approval from congress, involves respect for the environment and the generation of jobs," President Federico Franco said. "Nothing is concluding today, we are laying out the roadmap," he said. NEXT STEPS Among the next steps could be a public referendum on the project's development, said Franco, according to local press. "A referendum could be held on the same day as the general elections, April 21, to determine whether or not the public wants a large factory in Paraguay," Franco was quoted as saying. Any agreement is still at a very early stage and the future of the project will not be decided in the near future, the president said. "This is not going to be defined during the time that I am president," Franco said, adding that the final decision will come from the new administration, set to take office on August 15, 2013. Furthermore, all of the negotiations will have to go through congress. In July, the Paraguayan government issued and signed a decree heralding the start of negotiations with Rio Tinto Alcan for the installation of the aluminum smelter. More recently, the IDB approved US$275,980 for continued support to the government on the conceptualization and development of an aluminum smelter in the country. While the IDB did not mention a specific project, Rio Tinto's is the only aluminum smelter endeavor in Paraguay. The company handed in a prefeasibility study to the government in April 2012, and studies for power supply, environmental impact and others are underway. The plant will be Rio Tinto's largest worldwide, with capacity to produce more than 670,000t/y.
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.
News in: Mining & Metals (Paraguay)

Junior M&A, permitting roundup: Marlin, TriMetals, DOT
Updates from junior companies operating in the region.

Junior exploration roundup: Cyprium, Latin American, Bacanora
Canadian mining companies Cyprium Mining, Latin American Minerals and Bacanora Minerals provide operating updates
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Mining & Metals
Get critical information about thousands of Mining & Metals projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Maricunga (Proyecto Blanco)
- Current stage:
- Updated:
2 weeks ago
- Project: Chanape
- Current stage:
- Updated:
2 weeks ago
- Project: San Javier
- Current stage:
- Updated:
2 weeks ago
- Project: Palos Verdes
- Current stage:
- Updated:
2 weeks ago
- Project: Tolillar Salar
- Current stage:
- Updated:
2 weeks ago
- Project: Esperanza
- Current stage:
- Updated:
2 weeks ago
- Project: Mocoa
- Current stage:
- Updated:
2 weeks ago
- Project: Lacsha
- Current stage:
- Updated:
2 weeks ago
- Project: Tres Quebradas (3Q)
- Current stage:
- Updated:
3 weeks ago
- Project: Alacrán
- Current stage:
- Updated:
3 weeks ago
Other companies in: Mining & Metals
Get critical information about thousands of Mining & Metals companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Itasca Chile SpA  (Itasca Chile)
-
Itasca S.A. is the Chilean subsidiary of international consulting group Itasca International Inc., and provides engineering consulting services, including geotechnics and geomec...
- Company: EcuaCorriente S.A.  (EcuaCorriente)
-
EcuaCorriente (ECSA), an Ecuadorian subsidiary of China's CRCC-Tongguan consortium, is engaged in the exploration and development of copper deposits in Ecuador. The CRCC-Tonggua...
- Company: Mayer Brown LLP  (Mayer Brown)
-
Mayer Brown LLP is a global law firm with offices in a number of cities across the Americas, Europe and Asia. In Latin America, Mayer Brown provides clients regional experience ...
- Company: Minera Fresnillo, S.A. de C.V.  (Minera Fresnillo Mexico)
-
Minera Fresnillo SA de CV is a subsidiary of the Mexican mining company Fresnillo plc. established in 1997 to explore, extract and commercialize precious metals in Mexico. It is...
- Company: Josemaría Resources Inc.  (Josemaría Resources)
-
Josemaría Resources Inc. (formerly NGEx Resources Inc.) is a Canadian mineral exploration company focused on advancing its wholly-owned Josemaría copper-gold project, in the Arg...
- Company: Schneider Electric Software Global Solutions  (Schneider Electric Systems Mexico, S. A. de C. V.)
-
Schneider Electric Mexico is a subsidiary of Schneider Electric SA, and is engaged in the development of technologies and solutions for energy management and automation. Its pro...
- Company: Mirasol Resources Argentina
- Company: Albemarle Chile
-
Albemarle Chile is a branch of the US company Albemarle Corporation, a firm which develops, manufactures, and trades high added value and technologically advanced chemical produ...
- Company: SCM Minera Lumina Copper Chile  (Minera Lumina Copper Chile)
-
Chilean miner SCM Minera Lumina Copper Chile (SCM MLCC) is a joint venture between Japanese companies Pan Pacific Copper (PPC) and Mitsui & Co., Ltd. It owns and operates the Ca...
- Company: Gerdau S.A.  (Gerdau)
-
The Brazilian steelmaker Gerdau SA is one of the main producers of long steel in America and of special steels in the world, supplying the civil construction, industry and agric...