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Reports: Local tax disagreement threatens Vale potash project in Brazil

5:00 AM MST | February 4, 2014 | Francinia Protti-Alvarez

A disagreement over the distribution of local tax revenue threatens to slow, or even stop, Vale's (Rio de Janeiro) Carnalita potash project in the state of Sergipe, in northeastern Brazil, according to local media reports. Vale would invest $2 billion to develop the first phase of the project to produce 1.2 million m.t./year of potassium chloride. The deposits that Vale intends to mine lie between the towns of Capela and Japaratuba. The company plans to establish a processing plant at Japaratuba for the mined potash, one report says. About 80% of the deposit lies...

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