Uruguayan President Jose Mujica announced Thursday that the massive $3 billion Valentines open-pit iron ore mine project will go ahead, despite increasing local opposition.
The project, which is also known as Aratarí, was proposed by London-based Zamin Ferrous, through its subsidiary Minera Aratirí, and it has been on hold since August 2013. The firm will likely sign an investment contract with the government sometime in February, according to Mujica.
While the country legalized large-scale mining last year, many groups are calling for a national referendum on the matter to address environmental concerns.
Uruguay has approximately 2.5 billion tons of iron ore deposits, and if mined, they could put the country in the eighth position of the world’s largest iron producers list.
The project will involve a three-phase development that includes the construction of underground slurry and return water pipelines to connect the mine to a deep water port, to be built on Uruguay's Atlantic coast.