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Argentina may extend Vale "no layoff" order

Labor Minister Carlos Tomada told the government's news website that the order telling Vale to keep on thousands of workers may be extended for another 30 days.

Author: Reuters
Posted: Wednesday , 10 Apr 2013

BUENOS AIRES (Reuters) -

Argentina may extend an order telling Brazil’s Vale SA to keep on thousands of workers at a fertilizer project the company halted in March after it failed to get tax concessions, the government said.

Argentine Labor Minister Carlos Tomada last month announced a measure preventing the lay-off of at least 6,500 staff at the Rio Colorado facility until April 22nd. On Tuesday he told the government's news website that the order may be extended for another 30 days.

"If the situation is not resolved, the ministry has instructions from the president to initiate a preventive measure to cover the workers for another 30 days," Tomada told the official news outlet.

Vale, the world's second-biggest mining company, said in March it was halting operations at the potash mining project after failing to get the tax breaks it wanted from the government.

Vale asked for the breaks to help ease soaring costs it attributes to Argentina’s rampant inflation and controlled exchange rate.

The suspension of the project is a blow for President Cristina Fernandez and news of the decision sent shockwaves through the Andean province of Mendoza due to fears over the impact of thousands of job losses.

Other mining companies say they have frozen investments because of curbs on sending profits out of the country.
http://www.mineweb.com/mineweb/content/en/mineweb-fast-news?oid=185528&sn=Detail