Vale puts Canadian mine on hold

Vale SA, a Brazilian mining company, has postponed a $3 billion fertilizer project in Canada and it also may delay other investments in order to curb spending, according to Murilo Ferreira, the company’s chief executive officer. The Saskatchewan mine was to be developed near Kronau, which is southeast of Regina, and was expected to produce up to 2.9 million metric tons of potash.

“We find ourselves in some challenging economic times today and we have reviewed the projects that we have on our plate, one of those being the Kronau project, and we have made a decision to postpone it for the time being,” Cory McPhee, a Vale vice-president, was reported as saying.

No firm timeline exists as to when construction on the mine will begin, but the project remains in the company’s long term plans.

In the meantime, Vale’s priority will be the expansion of its $8.04 billion Serra Sul investment in Carajas, the world’s largest iron-ore mine.

The company did not mention specifically what other projects may be impacted by its “cost austerity” measures.

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