La Bodega to be operated by Ventana

The Colombian gold-mine La Bodega is to be operated by the Canadian firm Ventana Gold Corporation. The company has secured a loan of US$750,000 and will use 67% of the credit to make a payment related to La Bodega; the other third will become working capital for the reserve.

The loan stems from a company controlled by a member of the Ventana board, said firm set to receive warrants further down the line for negotiation on the stock exchange. Ventana Gold has a concession of 3,788 ha for gold exploration in the Colombian municipalities of California and Vetas in the Santander region.

Publication: SABI - Business News
Provider: South American Business Information
Date: March 16, 2008

Cencosud and Vale do Rio Doce keep the faith in Colombia

Big regional players Vale do Rio Doce and Cencosud - of Brazil and Chile respectively - will not be suspending investment in Colombia despite the escalating row between the latter nation and its neighbours Ecuador and Venezuela.

The executive director of finance at the diversified mining giant Vale, Fabio Barbosa has said that he expects the row to be solved before it reaches true crisis proportions. The firm is considering establishing an aluminium-processing plant in Colombia or in the Middle East as confirmed by company president Roger Agnelli.

The leading executive within the holding company Cencosud, Laurence Golborne has reassured Colombia that his operation invests with a long-term mentality always. It will not be put off by this (for now merely) diplomatic row as it gets its alliance with Casino, involving the Easy format, underway locally.

Publication: SABI - Business News
Provider: South American Business Information
Date: March 12, 2008

Vale looks at building hydro plant, coal mine

Brazilian mining and metals group Vale (NYSE: RIO) is looking at investing in construction of a hydro power plant and coal mine in Colombia, Vale CEO Roger Agnelli told Brazilian magazine Época.

The executive met with Colombia's President Álvaro Uribe to discuss the benefits of investing in the country, such as security and fiscal incentives, Agnelli said in an interview.

"I am looking at the option of building a hydro plant and a coal mine in Colombia," he said.

However, reports did not specify in which area of Colombia the investment would be made or how much it would be.

In September Colombia's transport minister Andrés Uriel Gallego said Vale was looking at investing US$6bn in Antioquia department to build an aluminum smelter plus infrastructure including a port terminal and a hydroelectric plant.

OTHER ENERGY INITIATIVES

Vale also plans to create a company dedicated to the energy sector, Agnelli told the magazine.

"Energy is strategic for us. Vale is Brazil's biggest energy consumer," he was quoted as saying.

The company aims to invest in new fuels such as biodiesel and recently acquired gas exploration blocks in an auction. It is also is keeping an eye on hydroelectric projects on the Madeira river in the Amazon, the CEO added.

Vale recently announced a plan to create a technological development center targeting clean energy initiatives along with federal development bank BNDES in São Paulo state's São José de Campos city.

"Beyond the São José project, in 2008 we want to create a technology center for the mining area and another dedicated to production processes, which would be built in Minas Gerais and Pará states," Agnelli said.

Rio de Janeiro-based Vale do Río Doce, which recently took the short name of Vale, is the world's largest iron ore producer and its assets include nickel, copper, aluminum, electric power and logistics.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 6, 2007