Indian iron-ore mining group Zamin Ferrous Resources was to develop the Minera Aratiri project in Uruguay, but has now downgraded the project on its international priority list from first to fourth position. The $1 billion that was slated by the company for the project is now going to be put to better use in other ongoing projects.
There are about 250 million tons of iron ore which have already been established at the project. A final recoverable quantity may be as high as 1 billion tons.
A controversial 130 mile slurry pipeline to transport the ore to a new port on the Atlantic coast is in early development stages and is considered by the president Jose Mujica to be the solution to open up the underdeveloped portion of the country to new business opportunities. However the project has faced considerable opposition from local residents and environmental groups.
As per the opposing factions the large-scale exploitation of the mine is likely to ruin vast tracts of pristine environment on one hand and is not likely to benefit the economy of the region to the extent that is claimed in the feasibility study and reports. The intense debate in the South American country is ultimately what influenced Zamin Ferrous to downgrade the priority of Minera Aratiri.
The general manager for Zamin Ferrous Respources' Uruguay unit Aratiri, Fernando Puntigliano, said that the project was put on the back burner mainly because of the political controversy over its feasibility and delays already affecting a completion schedule. All the noise is impacting this and other investments he added.