Hiparsa privatization decision postponed

Mining authorities in southern Argentina's Rio Negro province have postponed for five days the opening of offers by companies interested in reactivating the Hiparsa iron ore mining and processing complex, a provincial mining official told BNamericas. The authorities made the decision after an appeal for the enforcement of rights was lodged by a company calling itself Mining Group Material Supply & Sell. "They did not manage to present their proposal by Monday's (November 8) deadline," the official said. In October, the authorities in charge of the Hiparsa privatization process accepted a reactivation proposal for the Hiparsa complex by Chinese company A Grade Trading. The offer falls under private initiative legislation which states that once an initial offer is declared eligible, a public calling for bids is then made. If there is a better investment offer, the initial bidder can equal the offer. If he does so, he keeps the project. The investment project for A Grade Trading is US$25mn, with which it will completely reactivate the complex and replace the pelletization plant for a larger one as well as deepen the port access in order to load larger ships. Earlier studies estimated that to reactivate the complex would require an investment of US$219mn. Mineral reserves of iron are estimated from 250Mt-300Mt. The Hiparsa complex, 310km from Viedma, encompasses the iron mine, an industrial area, a 32 km-long train line for the transport of slurry concentrate, a pelletization plant and a port storage loading facility. Shanghai-based A Grade Trading is a mining and smelting company that sells iron ore to Chinese clients.