Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Argentina began crisis-negotiations last week for workers with Brazilian miner Vale by temporarily preventing the company from firing anyone at its failed potash project, reports the Latino Daily News.
Government officials with the country’s labour ministry implemented the action to protect both company employees as well as contract workers — nearly 3,000 people — from the Rio Colorado mine in Mendoza province.
Vale (NYSE: VALE) will be forced into talks with workers during the 30-business-day process.during which workers will not be able to strike and the company will not be able to terminate any employees.
The government will extend the negotiating period for up to 10 days, if after the initial meetings the parties do not reach an agreement.
Vale decided to stop the Rio Colorado megaproject in early March owing to cost overruns. The decision affects more than 8,000 workers in three provinces.
Map by Infomine
