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Newsletter
 
September 2009
Argentina Mining
 
 
Contact Us:
Agustín Álvarez 1348 Barrio Arizu, Godoy Cruz M5501BFB, Mendoza, Argentina.Tel / Fax: +54 (261) 4243479 -info@argentinamining.com-www.argentinamining.com 
In light of the mining boom Argentina is experiencing, one of the provinces that imposed a law restricting the activity is rethinking its position.
 
During August, a piece of news many expected since 2006 was finally known: Vale – the new owner of the Potasio Rio Colorado potash project, until earlier this year property of Rio Tinto, who in turn hadpurchased it from Minera Tea in 2005 – received the approval of its Environmental Impact Declaration,key milestone for advancing towards the realization of the 3,000 M dollars project. After this, thecompany needs to continue with sectorial permits and define how the energy required will be obtained.PRC will not only put Argentina on the potash market globally, but will becompleted in full observance of the law 7722 still in place in the province:the project does not include usage of any toxic substance. PRC proposesmining through dissolution, a process that consists in pumping hot waterinto a series of vertical holes of 1 km., where the mineral is located. Thesolution is then pumped back up where the potassium chloride iscrystallized and purified, achieving the final product.Argentina does not consume significant amounts of this mineral, mainlyused as a fertilizer. However, Brazil, home country of Vale, according to 2005 data was the third worldconsumer with 5.5 million tons; it requires this for its thriving agriculture. This project will give Valebetween 2.5 and 4.2 million tons, allowing them to satisfy up to 70% of the Mercosur demand.Potasio Rio Colorado is the most advanced and significant of the projects in development, but it was notthe only project that had advances during August. Calypso Uranium’s Huemul project, that intends toanalyze the uranium potential in a historically known district and former producer, also hadenvironmental approval for a drilling program.Finally, the copper deposit San Jorge, identified in the ‘60s, is alsoadvancing. Today, Coro Mining is working on its pre feasibility. Also, apublic consultation period is open where the community can get informedon the project and submit questions, as provided by the mining code. SanJorge can also be operated under the current law, since the companymodified the engineering of the project to a flotation only process.The impact of these projects, as forecasted, is tenfold: in the case of themost advanced, PRC up to 2000 direct jobs are estimated with amultiplying effect of 7 to 1, along with increased demand on the goods and services from local firms, aswell as taxes. If this positive boost on the economy of Mendoza happens during 2010-2012, it wouldcoincide with the construction of the Pascua Lama giant, in neighboring San Juan. And even thoughsuppliers in that province are preparing to satisfy this demand, it is only logic that there is at least somedegree of benefit to firms located in Mendoza.
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