Uruguay Warns Argentina on Pulp Mill Protests
Date: 16-Mar-06
Country: VENEZUELA
The $1.7 billion project to build two eucalyptus pulp mills in Uruguay along the Uruguay River bordering the countries sparked protests by Argentines worried about pollution and the impact on local tourism and fishing.
Under an agreement reached last week, Uruguay said it would stop construction of the mills for up to 90 days, while Argentina said it would suspend the roadblocks. Uruguay said the protests were badly damaging its economy.
But the blockades have continued with protesters demanding that Vazquez ask companies to end construction on the project, which is Uruguay's biggest industrial investment.
"I am going to instruct the presidential secretary ... if the roadblocks continue Uruguay will go before Argentine justice to demand they lift blockades and ask for reparation for the economic damage to our country," Vazquez said after meeting with Venezuelan President Hugo Chavez in Caracas.
For months residents in Argentina's Entre Rios province, across the river from the proposed mill site, have blockaded roads and restricted travel between the two countries.
Companies involved in the project, Finland's Metsa-Botnia and Spain's Ence say any pollutants from the plants would be below internationally tolerated levels.
The governments plan to meet twice during the 90-day suspension period for negotiations. The mills are expected to produce 1.5 million metric tonnes of wood pulp for export after output begins in late 2007.
