The government of Mendoza signed the transfer to the province of the Potasio Rio Colorado mine that was in the hands of the Brazilian mining company Vale and is once again offering it to foreign investors. The potassium salts mine for fertilizers, located in Malargüe, had been paralyzed since 2013 when 6 thousand jobs lost. The Mendoza government assures that it has been an achievement to keep the mine and its assets, calculated at $250 million; plus $30 million in a company bank account to carry out maintenance of the property until a partner is found.
Day: November 20, 2020
Fecovita launched the first social, financial trust in the country for $3 mn
The Federation of Argentine Wine Cooperatives (Fecovita), which includes 29 cooperatives, presented the first financial trust with an inclusive social purpose, for a nominal value of up to $3 million. It is the Fecovita I Financial Trust, launched within the framework of the company's Global Trust Securities Program, for the issuance of these instruments for a nominal value of up to $30 million. The fund will allow the use of the resources for the joint purchase of the inputs, generate the possibility of financing, greater competitiveness in the market and security in the quality of the supplies.
Saesa starts up thermal power plant that could generate $100mn a year
The company Saesa will start up the Central Térmica Uruguaiana (CTU), in the Brazilian state of Rio Grande Do Sul. It will buy Argentinean gas to produce electricity in a zone of the neighbouring country that has a high demand. The project will enable Argentina to export surplus natural gas and represents an opportunity to generate foreign exchange earnings of more than $100 million per year.
Government enables access to buy dollars from oil companies participating in the Gas Plan
The Board of Directors of the Central Bank of the Republic of Argentina (BCRA) decided that oil companies that registered in the Plan Gas 2020-2024 will have free access to the exchange market. They will be able to access foreign currency for the repatriation of investments, the income generated and maturity of capital and interest on financial debts for investments made as of November 16, 2020. Plan Gas is an initiative to produce 30 billion cubic meters of Argentine gas in four years; generating fiscal savings of $2.5 billion and foreign exchange savings of $9.2 billion.
Construction materials increased by 7.8% in October and doubled inflation
The prices of construction materials registered a 7.8% increase in October, according to the data of the Construction Cost Index (ICC) in Greater Buenos Aires published by the Index. Wholesale prices registered an increase of 4.7% in October, one point above the Consumer Price Index (CPI) of 3.8% for that month.
