Colombia’s Santos meets Lula da Silva in his first overseas visit

Colombian president Juan Manuel Santos arrived Tuesday in Brazil for an official two-day state visit that begins Wednesday with a meeting with President Lula da Silva to address a regional political agenda and strengthen bilateral trade.
Santos will be the first leader to be received at the refurbished Planalto Palace, seat of the Executive that underwent 18 months of maintenance and upgrading. He arrived in Brasilia with Foreign Affairs minister Maria Angela Holguin and Sergio Díaz-Granados head of Trade, Industry and Tourism.
Following the analysis of the regional agenda, and the conflicting situation with Venezuela, so far under control, the two leaders will talk about bilateral trade that in 2009 reached 2.7 billion US dollars according to Brazilian sources.
Even when Colombian exports soared 101%, the trade surplus still favours Brazil and one of the purposes of the visit is to try to level the volume of exchange by promoting investment in export companies.
Santos is also scheduled to visit Congress officials, members of the Supreme Court as well as a private meeting with Defence minister Nelson Jobim, an old acquaintance since the time the Colombian leader was Defence minister.
A meeting has also been arranged with Dilma Rousseff the presidential candidate for the ruling coalition, who besides is comfortably leading in public opinion polls for ballot day October 3.
On Thursday in Sao Paulo, Santos interviews Jose Serra, former governor of Sao Paulo and the main opposition presidential contender, and the Green Party presidential candidate Marina Silva who figures with 9% vote intention.
Before concluding his visit Santos meets with the board of the powerful Sao Paulo Federation of Industries, FIESP, where he plans to set the foundations for closer links with Colombian industry.
Colombia has grown steadily since former president Alvaro Uribe took office in 2002 and the country has attracted billions of dollars in investments.
“This is the first overseas visit since taking office and we have chosen Brazil because of the growing significance of the country”, and President Lula da Silva’s insistence in inviting him personally to visit Brazil, admitted Santos.
Minister Holguin described Brazil as “a strategic” partner for Colombia and the event will emphasize political dialogue and promote trade.
Another issue which does not figure in the official agenda released to the media is security along the hundreds of kilometres of common border shared by both countries.
Colombia’s Chief of Joint Staff Admiral Edgar Cely in recent statements said that “border security” is the responsibility of all and anticipated both leaders would agree on a common strategy to end with the “guerrilla corridors”, plus consider technical cooperation and exchanges to improve living conditions for people living in those areas.
Source - Mercopress

Lula da Silva’s double challenge as Mercosur chair

Consolidating Mercosur as an “undisputed irreversible” integrated block will be Brazilian president Lula da Silva challenge as the pro-tempore chair of the group in the last leg of his eight years in office.
The task must be accomplished in the last five months of his presidency, which ends next January, plus ensuring that his successor as leader of Latinamerica’s largest economy is effectively convinced of Mercosur merits.
“We must keep advancing so that Mercosur is something nobody can have doubts about: that we are convinced-friends in the construction of a political, economic, social and cultural block”, said Lula da Silva on taking the group’s chair from Argentine president Cristina Fernandez de Kirchner this Tuesday.
Following on the San Juan summit success which ended with years of Mercosur frustrations and paralysis anticipating a strong customs union, Lula da Silva and his acknowledged international prestige, can now concentrate on consolidating the integration process.
Argentina’s Cristina Kirchner and Uruguay’s Jose Mujica implicitly supported the role Lula da Silva will be playing in the coming months.
Mrs. Kirchner underlined that Lula da Silva together with her husband and former president Nestor Kirchner were the architects of the re-launching of Mercosur, while Uruguay’s Mujica praised the attitude of the block’s senior members leaders who left behind “chauvinism” and “the idea that each of them was the centre of the world” and opted for a full-hearted integration.
Lula da Silva anticipated that one of his major challenges would be to reach a trade and political association agreement between Mercosur and the European Union, a task which he admitted will force him to overcome the reticence of France that is contrary to any deals regarding the more competitive South American agriculture.
Source - Mercopress

Local investors need to reassess mining risks - Licancabur CEO - Chile

Chilean investors need to change how they assess financial risks associated with mining activities to ensure the successful development of a segment on the local stock exchange for the sector, the CEO of local small mining company Minera Licancabur, Juan Orellana, told BNamericas.
The listing of mining companies' shares or new projects for financing on the local bourse is possible, but local investors need to understand that mining is not as risky in terms of future returns as they think it is.

Parex "bias" for 2011 capex up on this year - Colombia, Trinidad & Tobago

Calgary-based Parex Resources (TSX-V: PXT) could increase 2011 capex plans following a successful drilling campaign in Colombia and Trinidad this year, according to company CEO Wayne Foo.
Parex this year plans to drill eight wells in Colombia and three in Trinidad.
"We're obviously pleased by what we've seen to date and if we were going to go either up or down, I think our bias would be towards up in order to incorporate development capital," said Foo, when asked about next year's capex plans.

Alcoa prices US$1bn debt offering

US-based aluminum producer Alcoa (NYSE: AA) has priced its public offering of US$1bn of notes, the company said in a statement.
The interest rate has been set at 6.150% and the notes are due August 15, 2020. The offering is expected to close by August 3, the statement said.
Alcoa expects to receive aggregate net proceeds of approximately US$993mn, after deducting underwriting discounts and estimated offering expenses.
The company intends to use the net proceeds together with cash on hand, if necessary, to fund the purchase price of its 6.50% notes due 2011, 6.00% notes due 2012 and 5.375% notes due 2013 that are tendered and accepted for purchase in its tender offers launched on Monday, the statement said.
Earlier this month, Alcoa announced Q2 net income of US$136mn, compared to a net loss of US$454mn year-on-year on higher revenues and average prices.
Revenues jumped to US$5.19bn from US$4.24bn in the second quarter of 2009.
A drop in aluminum production to 893,000t from 906,000t was offset by an increase in the average realized price to US$2,309/t, compared to US$1,667/t.
In Latin America and the Caribbean, Alcoa has operations in Chile, Peru, Argentina, Colombia, Jamaica and Brazil, the last of which represents the bulk of its earnings from the region.

Votorantim Siderurgia plans to become industry leader in the Americas

Votorantim Siderurgia, the steel arm of Brazilian conglomerate Grupo Votorantim, is aiming to be a leading player - both in terms of quality and cost - in long steel production in the Americas, according to company director Ricardo Henriques Leal.
As part of its growth strategy, the company is also planning to increase output to 3Mt/y from the current 2.53Mt/y. The increase will be achieved through improvements in productivity and developments at its existing units in South America, Leal said.
Votorantim Siderurgia's operations in Brazil comprise a plant in Barra Mansa and another in Resende, both in Rio de Janeiro state. It also has units in Argentina and Colombia.
The company also plans to increase long steel exports from Brazil as part of its growth strategy. Currently, exports accounts for 5% of Votorantim Siderurgia's sales, according to Leal.
In 2009, the company's revenues were 2.2bn reais (US$1.25bn), equivalent to 10% of the group's sales.
PRODUCTION
In Brazil, production capacity is 1Mt/y at Resende and 800,000t/y at Barra Mansa.
At Argentine subsidiary Acerbrag, Votorantim Siderurgia produces 330,000t/y, while Acerias Paz Del Rio in Colombia produces 400,000t/y. In Colombia, Votorantim also has iron ore and coal mining operations, supplying 100% of the raw material for its local steel plant.
Output will be increased by 20% in both Argentina and Colombia, according to Leal. "The hike in production capacity will be achieved through improvements at the current units," Leal told reporters during the Latin American Iron & Steel Trends conference, held in Rio de Janeiro last week.
Leal's outlook for the rest of the year in the Brazilian steel sector is optimistic. "The market has grown consistently this year compared to 2009 and I think that growth level will be maintained," he said.
By Fernanda De Biagio

Stocks in steel distribution sector at record 1.2Mt - Brazil

Brazil's steel distribution sector increased purchases by 85% to 2.35Mt in the first six months of this year, leading to a record stock level of 1.2Mt, according to the president of local steel distributor Frefer, Christiano da Cunha Freire.
The inventory is enough to supply the domestic market for 3.6 months, compared with a historical average of 2.7 months.
Through 2008, stocks stood at an average of 800,000t.
However, purchases from mills have already experienced a significant drop and stocks are expected to return to more favorable levels over the next three months, according to the executive.
From January to June, distribution sales totaled 1.97Mt, up 28% year-on-year. For the full year, national steel distributors association Inda is forecasting sales to reach 4Mt compared to 3.39Mt in 2009.
While sales have been increasing over the last few months, the pace has not been as fast as in Q1 or in the last quarter of 2009, Freire said at the Latin American Iron & Steel Trends conference, held in Rio de Janeiro last week. The executive also said that while the market remains strong, it has not fully returned to pre-crisis levels yet.
With Brazilian steelmakers increasing their prices and end users calling for decreases, the distribution sector will face an imbalance through the end of the year. However, Freire expects prices in the distribution chain to remain steady in H2At the same time, some distributors have been turning to the international market where prices are approximately 15% less, Freire said. Imports have been increasing and currently supply approximately 25% of local demand.
By Fernanda De Biagio

APM considering international arbitration over Karachipampa - Bolivia

Canadian miner Atlas Precious Metals (APM) is considering going to international arbitration over the reactivation of the Karachipampa polymetallurgical plant, APM's legal representative Betsy Miranda told BNamericas.
"If we keep experiencing the kinds of irregularities that we have up to now, it clears the path for us to go to international arbitration because we see more and more that we are right," Miranda said.
At the beginning of July, APM asked the Bolivian chamber of commerce, the local regulator, to dissolve its JV contract with state miner Comibol for the latter's failure to meet the agreements for the reactivation of Karachipampa.
Among APM's reasons for deciding to terminate the contract are the government decision to cash in the company's surety bond despite the fact that it expires in 2011, and the lack of land to construct sulfuric acid and zinc plants.
IRREGULARITIES
Among the reasons for going to international arbitration are the irregularitiessurrounding the hearing to create a tribunal and proceed with the dissolution of the contract with Comibol, according to Miranda.
"It's not that entity's responsibility to make observations about my ability to take on the process as APM's representative. The tribunal should have been appointed first and, once formed, it could have made the observation about the scope of the power given to me by the company," Miranda said.
The national chamber of commerce did not even allow the tribunal to be created, according to Miranda, who added: "Unfortunately, there is political interference at every level here."
In addition, just a few days ago, APM received the notice from Comibol giving the company a period of 90 days to move forward with the investments or it would cash in the US$850,000 surety bond.
"It doesn't make any sense - the warning arriving weeks after they have cashed in the bond. They are doing things backwards," she said.
The agreement Comibol signed with APM workers, guaranteeing their jobs, is another reason for going to international arbitration.
"It's disloyal of our partner [Comibol], guaranteeing jobs to workers without APM's knowledge or consent," she said.
APM has presented four plans for the plant's reactivation, with different shifts to start lead and silver production in July 2011.
"But they haven't accepted any of these plans. It's as if they don't want us to move forward with the project," she said.
In June 2005, Comibol and APM signed a JV agreement to reactivate the 51,000t/y plant in Potosi department. APM has a 65% share and the Bolivian state holds the remainder. Karachipampa will treat silver concentrates.
By Harvey Beltrán

Two groups secure contracts in second renewables call - Peru

Peru's energy and mining investment regulator Osinergmin has awarded two groups contracts in the second auction round to supply the national grid with renewables for 20 years.
The winners are Empresa de Generacion Hidroelectrica de Chancay and Empresa Electrica Rio Doble, according to a notary document from the watchdog. Contract signing is scheduled for next month.
The first group will develop biomass project Lambayeque (1.5MW) and hydro Patapo (1MW), and the second winner hydro Las Pizarras (18MW). The three projects are due to come online in 2012.
Second round requirements were for 419GWh/y from biomass, 8GWh/y from solar and a maximum of 338MW from hydro.

Olmos power component bidding timetable extended - Peru

Peru's Olmos hydro project (PEOT) has extended the bidding timetable to carry out the power generation component.
The deadline to purchase bidding rules is August 13, while the data room will remain open until September 16, according to a notice from PEOT.
Prequalification documents are due by August 16 with prequalifiers scheduled to be announced August 19. Offers are due September 17 and awarding slated for October 1.
The power component is due to take 3.5 years, with plant 1's price tag at US$90.6mn and US$98.4mn for plant 2. The plants will be built at the exit of a 20km tunnel which will transport water from the Limon dam, generating 2.39TWh/y. The tunnel is due to be ready in the second quarter of next year.

MIEM releases names of wind tender participants - Uruguay

Uruguay's ministry of industry, energy and mines (MIEM) released the names of companies participating in the tender to develop up to 150MW of wind capacity organized by state power company UTE.
Twenty-two bids from 15 different firms were received earlier this month, with each wind farm ranging in capacity from 30MW to 50MW. Tender results are due out in coming months.
Local company Polesine submitted three separate bids, while firms Aguas Leguas, Ensol, Kital and Ladaner each proposed two projects. Generacion Eolica Minas, the local subsidiary of German renewable energy group Sowitec, also made two bids.
Six of the projects are submitted for Maldonado department on the country's southeast coastline, where UTE currently operates its 20MW Caracoles wind farm.
The bidding process is part of UTE's drive to add 300MW of wind capacity by 2015, when the company expects 50% of its capacity to come from renewable.

Impsa lands US$150mn Embalse contract - Argentina

Argentine firm Impsa has landed a US$150mn contract to upgrade four steam generators at the Embalse nuclear facility in Cordoba province, a company spokesman told BNamericas.
Impsa will develop the new generators at its Argentine facilities. The new generators will increase steam supply to turbines at the 648MW plant.
Work on the units is due to start this year, with Impsa expecting to complete installment by 2013, the spokesperson said. The firm is hoping to develop further projects for state nuclear company NA-SA in the near future.
The Andean Development Corporation (CAF) approved a US$240mn loan for the redevelopment of the Embalse facility earlier this year.
At the time, CAF estimated that investment in the project to extend the plants
useful life by 25-30 years could hit US$1.02bn.
Embalse and Atucha I, Argentina's second nuclear power plant, account for about 7% of power supply in the country.

Santo Antonio hydro to launch operations in December 2011 - Brazil

Brazilian concessionaire Santo Antonio Energia aims to launch commercial operations at the 3.15GW Santo Antonio hydro by December next year, a spokesperson for the firm told BNamericas.
"Works are being done to launch commercial operations in December 2011. The last generator unit will be online by 2015," the spokesperson said.
The hydro plant is being built on the Madeira river in the Amazon region.
Construction is now 29% complete, according to the spokesperson.
Brazilian power company Eletrobras Furnas holds a 39% stake in the Madeira Energia group that controls Santo Antonio Energia.
Madeira Energia also includes Odebrecht with a 1% stake, its subsidiary Odebrecht Investimentos em Infra-estrutura (18%), engineering firm Andrade Gutierrez Participacoes (12%) and Brazilian power company Cemig (NYSE: CIG) with 10%.
By João Carvalho

Software industry still has major challenges - Chile

Considering that Chile's software industry grew 12% in 2007 and by about 22% last year, growth has been positive and steady, despite economic problems resulting from the global crisis and the earthquake that hit the country in February. This is mainly because today ERP is no longer exclusive to large companies or corporations - small and medium enterprises have come to understand the importance of investing in these management systems, specifically to optimize business. Today, for a million dollars you can access a 100% web-based ERP solution that will improve the management of a company while also reducing costs and increasing productivity, allowing for the solution to be managed from anywhere in the world.
Thus, the industry has defined the challenge of competing abroad, opening new markets for Chile to earn its place as an exporter of software. While there are many developers that are already operating in other latitudes and software exports have grown positively, the idea is that these efforts increase.
On the other hand, it is important that ERPs incorporate new tools such as electronic invoicing, business intelligence and/or CRM (Customer Relationship Management), and that these tools conform to the particular requirements of various sectors, such as in the areas of mining and construction. Moreover, there are certain companies that need to operate these systems because of their business partners' requirements, which makes it evermore necessary that they are compatible and can communicate with each other.
Finally, SaaS - software as a service - is a trend that is beginning to consolidate, growing at an annual 40%, mainly due to irresistible advantages and benefits when compared to the classical solutions. Particularly when considering that in a globalized world, a company that can be managed from anywhere in the world and at any time, with information online and updated in real time, becomes an unparalleled competitive advantage. In fact, international consultancy Gartner identifies cost, speed and resources as the three elements that lead companies to opt for software as a service, since it means less expense than the traditional model, it is easier and faster to implement and requires fewer resources than the traditional model. The challenge that this trend represents, is clearly related to a safe and world class service.
by Diego Gonzalez, general manager of Defontana

San Juan: Mercosur Cumbre

Los cuatro países que integran Mercosur (Brasil, Argentina, Uruguay y Paraguay) aprobaron ayer, en una cumbre celebrada en la provincia argentina de San Juan, el nuevo Código Aduanero que se negociaba desde hace más de seis años y que supone un paso importante en el camino de construcción de un mercado común. El principal obstáculo, la supresión del doble arancel externo, se superó gracias a un acuerdo con Paraguay. La presidenta argentina, Cristina Fernández de Kirchner, se felicitó del esfuerzo: "Apostamos desde el primer día en que esto iba a salir adelante y ahora damos testimonio de que no se trata de retórica sino de hechos", aseguró.

Cepsa to kick off block 131 seismic campaign - Peru

Spanish company Cepsa will in coming days begin seismic acquisition on Peruvian block 131 in the Ucayali basin.
The energy and mines ministry approved the EIS for the work last month, state news agency Andina quoted Cepsa Peru general manager Antonio Masias as saying.
The work will entail the acquisition of 564km of 2D seismic, BNamericas reported previously.
The company will invest around US$10mn on the 4-5 month campaign, said Masias, adding that drilling could begin in 2012 following approval of a separate EIS.
The project would be developed if reserves of 20M-30Mb are found, according to the executive.
Masias also announced that Cepsa is considering participating in the E&P round for 25blocks.

Authorities allow BPZ to re-open Albacora well - Peru

US oil firm BPZ Resources (NYSE:BPZ) has reopened the A-14XD well on its Albacora field in Peru after receiving permits for extended well testing (EWT) and gas flaring from authorities, the company said in a statement.
The A-14XD well was closed earlier this month after averaging production of around 1,510b/d during 2Q10.
The permits are valid for the next six months and are subject to gas flaring limits. The firm believes that production will remain around current levels.
BPZ is awaiting further EWT and flaring permits for an additional six wells on the Covina field. The firm announced the discovery of 75f (22m) of net oil and gas pay at the CX11-22D well on Corvina earlier this month.
Both the Corvina and Albacora fields are located on the offshore BZ-1 license. Second quarter production from the BZ-1 license fell 46% from the previous quarter due to the closure of wells lacking permits.

Alange spuds Topoyaco-1 well - Colombia

Toronto-based Alange Energy (TSX-V: ALE) has spudded the Topoyaco-1 exploration well in Colombia's Putumayo basin, the company said in a statement.
Topoyaco-1 is the first well drilled as part of a Cdn$17mn (US$16.4mn), three-well campaign. The firm estimates that drilling will take 40 days to complete.
Alange Energy operates the Topoyaco block with a 50% working interest. Fellow Canadian firm Pacific Rubiales (TSX: PRE) holds the balance.
Engineering consultants Petrotech estimated gross reserves of around 45Mb for the Topoyaco field in a report produced last year.
Alange is currently producing around 4,700b/d across its 12 Colombian concessions and targeting a production rate of 8,000b/d by end-2010, the firm's CEO Luis Guisti told BNamericas earlier this month.

M&P finds oil at Sabanero-1 - Colombia

Paris-based Maurel & Prom (M&P) has encountered hydrocarbons at its Sabanero-1 well on the Sabanero license in Colombia's Llanos basin.
Around 40f (12m) of net pay has been identified with potential flow rates yet to be confirmed, the firm said in a statement.
M&P will now drill the Sabanero-SE1 well in order to judge potential reserves and commerciality levels on the block.
The firm also plans to announce drilling results for its Cascabel-1 and Bachue-1 wells next month.
M&P holds four licenses across Colombia and was awarded the COR 15 concession by the country's national hydrocarbons agency (ANH) in last month's open round 2010 tender.

Subsea 7 awarded services contract from Petrobras - Brazil

Norwegian oil services company Subsea 7 has picked up a contract with Brazilian state-run energy group Petrobras (NYSE: PBR) to provide remotely operated underwater vehicles (ROVs) for operations offshore Brazil.
Subsea 7 will also provide underwater positioning survey services onboard a ROV support vessel, the company said in a statement.
The contract has an estimated value of US$50mn. The contracted services will start in the third quarter this year, the company said.
"The award allows us to provide additional services encompassing the provision of a number of high precision ROV mounted sensors, including inertial navigation and sound velocity equipment, all of which are linked to a navigation software program to allow the integration of all positioning sensors onboard the vessel," Subsea 7 executive Bruce Masson said in the statement.

LPG stocks sufficient to meet winter demand - Enargas - Argentina, Uruguay

The head of Argentina's natural gas regulator Enargas, Antonio Pronsato, denied that there is a shortage of LPG in the country and insisted that production levels are sufficient to satisfy national demand, state news agency Telam reported.
Pronsato blamed any supply shortfalls on local distributers. He also rejected recent reports in the Argentine press that the country is planning to import LPG.
"Our country is a net exporter of LPG and does not import one ton at any time of the year," Telam quoted Pronsato as saying.
Record low temperatures across the Southern Cone have caused stress on regional gas supplies.
As well as reports of LPG shortages, industrial and residential customers across Argentina have complained of service disruptions on the national gas distribution network.
Press in neighboring Uruguay, meanwhile, reported that LPG supplies have returned to normal in Montevideo. The resumption of service followed strikes at a plant that caused supply problems.

YPFB reports record LPG demand - Argentina, Bolivia

Bolivia's state hydrocarbons company YPFB is dispatching record levels of up to 123,000 canisters a day of LPG in response to the current spell of lower than average temperatures affecting the country.
Around 77% of the deliveries are going to the urban centers of La Paz, Cochabamba and Santa Cruz, YPFB said in a statement.
On average 38,000-40,000 canisters a day are being dispatched to Santa Cruz alone, according to the firm, with demand up 16% on the same period last year. Demand is also up in the western mountainous regions of Potosi and Oruro.
The firm guaranteed that LPG supplies are sufficient across the country to cope with recent demand increases. Diesel and gasoline supplies will also not be affected, YPFB's commercial director Guillermo Acha said in the statement.

New hydrocarbons law to increase government revenues by US$550mn - Ecuador

Reforms to Ecuador's hydrocarbons fiscal regime will bring the government extra revenues of around US$550mn a year, the country's non-renewable natural resources minister, Wilson Pastor, announced.
The reforms came into force after the country's President Rafael Correa approved the legislation late last week, state news agency El Ciudadano reported.
The approved legislation has three chapters that cover service payment rates, institutional environment and taxes, BNamericas previously reported.
For investment in fields in production, 15% of profit would be recognized for operational costs and up to 25% for new investment in exploration, depending on the estimated geological risk.
On the institutional front, the initiative aims to create a hydrocarbons department and a national hydrocarbons agency. The first would manage oil assets, evaluate reserves, identify production areas and carry out bidding; the latter would act as regulator.
The second chapter also envisions the restructuring of state oil company Petroecuador into two companies, one for E&P and the other for refining and commercialization.
The reform package includes a transitory clause that establishes a timetable for replacing current production sharing contracts with service payment contracts.
A period of 120 days would be given for large contract holders to reach an agreement with the ministry, and 180 days for smaller contracts. A total of 22 contracts would be modified.
The government is expected to set a contract liquidation price for companies that do not accept modifications.

Multiple opportunities in Latin America - Technip CEO

There are multiple upstream and downstream opportunities in Latin America, according to French oil and gas services company Technip's CEO Thierry Pilenko.
"There are quite a number of opportunities both upstream and downstream but the timing of the final investment decision is much more difficult to forecast in countries like Venezuela, Chile or Colombia," Pilenko said in a presentation.
The executive highlighted Technip's push to increase its footprint in Brazil for work from non pre-salt and pre-salt areas. "We see Brazil on a strong path."
Technip reported that its Americas backlog at end-June represented 18% of the group's 8.26bn-euro (US$10.7bn) backlog. The bulk of the backlog is from the Middle East (37%), followed by Europe, Russia and Central Asia (21%), the Americas, Africa (16%) and Asia Pacific (8%).
This geographic balance will be maintained through year-end, added company CFO Julian Waldron.
At end-March, Technip's Americas backlog accounted for 18.1% of the company's 8.02bn-euro backlog.
The firm's Americas revenue in the second quarter fell 20.4% to 347mn euros compared with 2Q09. Companywide revenue reached 1.49bn euros.
By David Casallas

Regional reserves in peril if access continues to be restricted

Latin America's significant 3P reserves of up to 430Bboe might not be unearthed if national oil companies (NOCs) do not act within the next five years, according to Arnold Volkenborn, VP for Schlumberger Business Consulting.
"Latin American reserves can take decades to develop," Volkenborn said in a presentation. "The reserves in Latin America are often heavy crude, capital intensive and have longer development cycles."
Moreover, access to reserves is restricted in the Americas by NOCs that control the rights to the resource, according to Volkenborn.
"The net effect of restricting access to reserves by NOCs is the deferral of development over many decades," he said.
"The underlying assumption is oil will be more valuable in 50-100 years," he continued. "If this is not the case, the vast majority of Latin American reserves will never be developed."
By Christopher Lenton

Roundup: ICT training, PowerData, Agesic, Aktio

Colombia's ICT ministry is earmarking 4bn pesos (US$2.1mn) to provide technology training, the ministry said in a statement.
Education efforts will be focused on micro SMEs, and the ministry expects to call for applications in August.
A total of 3,477 micro SMEs have benefitted from previous training initiatives carried out between 2008 and the present.
***
The Chilean division of Spanish data management solutions provider PowerData has received ISO 9001:2008 certification, PowerData said in a statement.
PowerData's South America regional director, Josep Tarruella, said the certification will strengthen the division's products, services and processes.
PowerData has three offices in Spain. In Latin America, the company has an office in Santiago, Chile, and another in Argentine capital Buenos Aires.
***
Uruguay's e-government development agency Agesic has rolled out a new search tool that allows citizens to view government information, the Uruguayan president's office said in a statement.
The tool is designed to be similar to Google's (Nasdaq: GOOG) search engine.
Agesic director Jose Clastornik said the initiative is aimed at "encouraging access to public information through an agile instrument that is customized for citizen use."
***
Latin American IT products distributor Aktio, a unit of Brazilian IT firm Grupo Açao, has signed up Argentine IT firm Uxor IT as a new channel partner, Aktio said in a statement.
According to the agreement, Uxor IT will distribute IBM (NYSE: IBM) software solutions, and also provide IT security, Web 2.0 and integration services.
Uxor IT has offices in Argentina, Chile, Brazil, Mexico and the US.
By Matthew Malinowski
* T-Systems acquires SAP's hosting unit - Mexico
German IT services provider T-Systems has acquired the hosting arm of SAP (NYSE: SAP) Mexico and Central America, the former said in a statement without providing hard figures.
T-Systems will now offer extra services such as administration and implementation of applications to more than 57,000 users from Mexico.
T-Systems - part of German telecoms operator Deutsche Telekom - has a long-standing partnership with SAP through which it provides services to around 1.5mn SAP users globally with a workforce of around 3,000 SAP consultants.
* SAP's Q2 sees double-digit growth in Latin America - Regional
SAP (NYSE: SAP) recorded double-digit growth in Latin America during the second quarter compared to the year-ago quarter, the company said in a statement without providing hard figures.
Revenues in the Americas, excluding the US, leapt 29% to 275mn euros (US$357mn), up from 214mn euros year-over-year.
Globally, SAP posted net profits of 491mn euros in the second quarter, up 15% from 426mn euros reported in the year ago-quarter, the company said in a statement.
Total revenues for the company rose 12% to 2.89bn euros, compared with 2.58bn euros in 2Q09. Of that total, software revenues hit 637mn, representing a 17% hike year-over-year.
The company also announced it has completed the cash tender offer for all outstanding shares of common stock of Sybase, which will continue to operate as a separate company.
SAP adjusted its full-year projections to take into account the acquisition of Sybase, and now anticipates 9-11% growth at constant currencies from 8.2bn euros during 2009.
Follow this link (http://www.sap.com/about/investor/press.epx?pressid=13632) to see the full statement.
* Desca forges alliance with Aspect - Regional
US contact center platform provider Aspect Software has signed a reseller agreement with Latin American telecoms and networking solutions provider Desca, the companies said in a joint statement.
Under the agreement, Desca will distribute and implement Aspect products in Mexico, Argentina, Colombia, Panama, Costa Rica, El Salvador, Guatemala, Peru, Venezuela and the Caribbean.
The partnership will target the finance, outsourcing and cable vertical sectors.
"This alliance is aimed at strengthening Desca's offerings at a regional level and with the focus of contact center solutions to resolve business problems for large companies, such as customer service and billing," said Fernando Rodriguez, CTO of Desca.
* Sagem, Sonda challenge national registry tender process - Chile
Chilean IT systems integrator Sonda and French biometric technology company Sagem Securite have started legal proceedings against the Chilean national registry with allegations that its tender process to supply updated ID cards and passports was illegal, local paper Diario Financiero reported.
The contract was awarded to Spanish systems integrator Indra on July 16 after a process which lasted two and a half years.
Sagem has reportedly accused the winning company of failing to keep its bid guarantee documentation up to date, letting its US$500,000 guarantee note lapse for 10 days before renewing it.
Chilean IT group Coasin was earlier eliminated from the bidding process for that same reason.
Meanwhile, Sonda is requesting that the national registry reconsiders its decision to oust the company from the bidding after judging its face-recognition technology inadequate during the technical phase of the process.
The Chilean company is seeking for the contract to be withdrawn from Indra and for the technical evaluation to be repeated.
Both Sonda and Sagem filed their complaints within the 10 days allowed for participants to register concerns about the tender process.
* TCS resolves to double Latin American revenues in 5 years - Regional
Indian IT services firm Tata Consultancy Services (TCS) expects to more than double its Latin American sales in the next five years to hit US$1bn with an aggressive expansion strategy, according to international press reports.
The company sees the financial and mining sectors as potential areas of growth for the company in the region.
Latin America is due to see growth of around 5% this year, according to figures from the International Monetary Fund (IMF).
TCS has operations in Mexico, Argentina, Chile, Uruguay, Colombia, Brasil, Ecuador and Peru.
The company posted global net profits of US$1.45bn in fiscal year 2010, ended March 31, surging 29.0% from US$1.12bn in fiscal 2009, while revenues reached US$6.34bn, 5.38% higher from US$6bn in fiscal 2009.

Global Crossing US$47mn in red in Q2 despite higher demand from Latin America

International IP connectivity solutions provider Global Crossing (Nasdaq: GLBC) saw "healthy demand" in Latin America during the second quarter of the year, with particularly intense activity in Brazil, company CEO John Legere said during a conference call with investors.
"We're also seeing strong demand in our data center business, which primarily benefits our GC Impsat segment as 14 of our 17 data centers are in Latin America," the executive added.
However, despite the demand in Latin America, the company posted a global net loss of US$47mn in the second quarter of the year, compared to a net profit of US$27mn in the same period in 2009, according to the company's earnings statement, "due to unfavorable foreign exchange impacts and, to a lesser degree, an increase in interest expense."
Global Crossing generated revenues of US$630mn in the second quarter, basically flat on the US$633mn posted in the same period last year.
Revenue from the company's "invest and grow" category - the business focused on serving global enterprises and carrier customers, excluding wholesale voice - increased 3% year-over-year to US$555mn.
The GC Impsat unit, through which Global Crossing operates in Latin American markets, generated revenues of US$137mn in the quarter, compared to US$125mn in the year-ago period.
GC Impsat generated a net profit of US$10mn in the period, compared to a net profit of US$18mn in 2Q09.
Legere said that Global Crossing also expanded infrastructure capacity during Q2. "We added capacity on our North American and European terrestrial networks and our subsea networks in the Atlantic and Latin America," he said.
Global Crossing expects revenues from its "invest and grow" category to be US$2.30bn-2.38bn for this year.
The company offers a full range of data, voice and video products to approximately 700 carriers, mobile operators and ISPs. It delivers services to more than 700 cities in over 70 countries.
By Juan Pedro Tomás

Morales signs US$134mn CAF loans for roads, flood control - Bolivia

Bolivia's President Evo Morales has signed loan agreements totaling US$134mn with the Andean Development Corporation (CAF), which will be used primarily to fund highway and flood control projects.
National roads administrator ABC will use a US$70mn loan to complete construction of several highway projects including the Palo Marcado-Hito BR94, Huachacalla-Pisiga, Huanuni-Bombo-Llallagua and Potosi-Tarija highways as well as the Masicuri bridge.
ABC will use another US$29mn loan for highway rehabilitation projects, state news agency ABI reported.
Water and environment ministry MMAyA will fund two flood protection initiatives in Santa Cruz and Cochabamba departments with a US$22mn loan.
The first project, requiring an investment of 176mn bolivianos (US$25mn), includes channeling and drainage work around the Grande, Pirai and Chane rivers, the ministry said in a release.
The second project involves construction of flood walls and floodways on the Chapare river in Villa Tunari at a cost of some 14mn bolivianos.
CAF expects to approve some US$2.5bn in loans for Bolivia in the next five years, said the corporation's president, Enrique Garcia.

Venezuelan state aluminum reducer Alcasa is producing about 250t/d, less than 50% of the 580t/d

Venezuelan state aluminum reducer Alcasa is producing about 250t/d, less than 50% of the 580t/d the company used to put out, a Sintralcasa union official told BNamericas.
"This is due to two situations that began months ago: The energy crisis that forced us to shut down two production lines and the lack of investments," the union official said.
Last December, Alcasa started the process of permanently shutting down and dismantling reduction lines 1 and 2 at its plants in compliance with the government-implemented power rationing program.
"The result is that only 231 cells of the original 684 installed are in operation," the official said, adding that the sharp drop in production has forced the company to import aluminum rods.
Alcasa may have to draw on the production of compatriot state reducer Venalum to obtain the aluminum needed to reactivate its rolled products area, Sintralcasa union official Carlos Gomez told BNamericas recently.
The Alcasa and Venalum plants are located in the Matanzas industrial zone in Puerto Ordaz city in eastern Venezuela's Guayana region. Both companies are controlled by state heavy industry holding CVG.
By Harvey Beltrán

Gas Natural Fenosa's Latin America capex to hit US$3.15bn-4.67bn

Spanish group Gas Natural Fenosa's strategic plan envisions capex of 2.4bn-3.6bn euros (US$3.15bn-4.67bn) for Latin America through 2014.
The energy giant aims for 6mn gas and 5.3mn power distribution connections in the region in 2012, and 2.6GW installed capacity from the current 2.11GW.
The company's gas and power connections at the end of the first half this year totaled 5.5mn and 4.77mn, respectively, up 3.2% and 5.4% from 1H09, according to a presentation by CEO Rafael Villaseca.
The group's forecast for connections in the region in 2014 reaches 12mn-13mn, and 2.6-3.5GW installed capacity.
In 1H10, Gas Natural Fenosa's Latin American gas distribution sales rose 6.1% to 92.3GWh and electricity distribution grew 9.7% to 8.97GWh compared to the year-ago period.
On the power generation front, the group saw production in the region dip 1.8% in the period to 10.4TWh, as a result of programmed maintenance at the Tuxpan thermo plant in Mexico.
Villaseca highlighted increased thermo production in Panama and higher prices in the Dominican Republic and Puerto Rico.
The Spanish energy giant's power generation, gas and power distribution investment in Latin America in the first six months of 2010 totaled 85mn euros, 29mn euros and 50mn euros, respectively.
Villaseca attributed the higher capex, in part, to the completion of the 400MW Durango combined cycle plant in Mexico that is in the commissioning phase.
For company financials, go to this link (http://portal.gasnatural.com/servlet/ContentServer?gnpage=3-10-1¢ralassetname=3-10-BloqueHTML-447#), and the strategic plan, this link (http://portal.gasnatural.com/servlet/ContentServer?gnpage=3-10-1¢ralassetname=3-10-BloqueHTML-2400)
By David Casallas

Capex still testing RN-X-1001 well in Rio Negro - Argentina

Argentine oil firm Capex is continuing to test its RN-X-1001 well on the Loma de Kauffmann concession in Rio Negro province despite local press reports stating that production had begun.
"We are exploring the well and testing it, but it is not yet operational. That is incorrect information that we didn't release," a company spokesperson told BNamericas.
Earlier this week, local press in Argentina reported that the RN-X-1001 well had tested positively for oil and that the firm was set to begin production.
The news followed information released by the government of Rio Negro province stating that production rates of 50m3/d of crude oil had been produced by the firm.
"We still do not have any information about the potential of the well. The information we have so far is not accurate," the spokesperson said."The province is making a lot of fuss out of this."
Capex reported natural gas discoveries on the Loma de Kauffman block in June 2008. However, RN-X-1001, which is the seventh well drilled on the block, would be the first oil discovery.
Meanwhile, the government of Rio Negro province announced that over US$20mn has been invested in hydrocarbons E&P work in 2010.
The government expects a further 14 wells to be drilled across six licenses in the province over the rest of the year. The wells will be drilled by firms including Capex, CGC, Petrolera Entre Lomas and Petrolifera, the provincial government said in a statement.
By James Fowler

Petrobras aims to start Tupi pilot production three months ahead of schedule - Brazil

Brazilian state-run energy major Petrobras (NYSE: PBR) is working to launch pilot production at the pre-salt Tupi oil field three months ahead of schedule in order to book revenues earlier, a spokesperson for the company told BNamericas.
Tupi field production will start at 100,000b/d, the spokesperson added.
An extended well test is currently being carried out on the well. Pilot production had been originally expected to begin in December.
Commerciality for the Tupi field is also expected to be declared by the end of 2010.
Petrobras has a 65% stake in the BM-S-11 block where Tupi is located. British major BG Group holds 25% and Portugal's Galp 10%.
According to Petrobras, Tupi reserves could reach 5B-8Bboe. The field is located in Brazil's Santos basin.
By João Carvalho

Junior roundup: Magellan, Rio Novo, AQM, Patagonia, US Gold, Bellhaven - Regional

Vancouver-based Magellan Minerals (TSX-V: MNM) has signed a binding LOI to form a 50:50 JV with private company ECI Exploration and Mining for mineral properties located in Brazil's Mato Grosso state, the former said in a statement.
Magellan and ECI have agreed to contribute their respective mineral claims located in Mato Grosso for exploration by the JV and to each fund a minimum of Cdn$250,000 (US$241,477) in exploration expenditures on the properties that are subject to the JV during the initial 12 months from the signing of the LOI.
Magellan also has the Cuiu Cuiu and Coringa gold projects in Brazil, where drilling is currently in progress with three rigs.
ECI is a gold, silver and associated base metal exploration company with properties in Brazil, Mexico and Chile.
***
Toronto-based Rio Novo Gold (TSX: RN) reported additional results from its ongoing drilling program at the Almas gold project in Brazil's Tocantins state.
To date, 112 diamond drill holes have been completed totaling 14,876m out of the approximately 29,000m planned for completion by November.
Infill drilling at the Paiol target returned 24m at 0.8g/t, including 16m of 1.09g/t; and 45m grading 1.71g/t, including 23.1m at 2.67g/t.
Results from the Arroz target infill drilling program included 11.8m of 2.54g/t, including 5m at 4.00g/t; and 19.2m grading 1.45g/t.
Rio Novo also has the Guaranta gold project in Mato Grosso state.
***
Vancouver-based AQM Copper (TSX-V, Lima: AQM) announced the discovery of a new mineralized zone at the Sicera Sur satellite target, roughly 6.5km west of the Main zone at the Zafranal project in Peru.
Drilling returned 36m of 0.29% copper and 48m of 0.64% copper.
Sicera Sur remains open in all directions, including depth, and the company expects to carry out an exploration and drilling program to determine the extent of copper mineralization there in the near future, AQM said in a statement.
Zafranal is held by AQM and compatriot Teck (TSX, NYSE: TCK) under a 50:50 JV agreement with AQM as the operator.
***
UK-based Patagonia Gold plc (LSE: PGD), via local subsidiary Patagonia Gold SA, has purchased the Estancia El Rincon property in Argentina's Santa Cruz province, which holds the Lomada de Leiva heap leach gold project and other gold prospects, the company said in a statement.
The purchase price was US$804,000, of which half was paid at completion with two further installments of US$201,000 due in October 2010 and April 2011, the statement said, adding the agreement includes a sale back to the sellers after mining and/or exploration have ceased for a period of two years (except in cases of force majeure).
The Lomada project contains an NI 43-101 compliant resource of 237,000oz gold based on a positive scoping study.
Highlights of the study include pre-production capital of US$8.5mn and output of 21,000oz/y over a seven-year minelife.
In April, the provincial mining department approved the EIS and issued the necessary permit for a 50,000t trial heap leach operation at Lomada, the statement said. Construction of the trial heap leach is scheduled to start in September with first gold production 1Q11.
***
Toronto-based US Gold (Amex, TSX: UXG) announced assay results for 15 new drill holes at the El Gallo project in Mexico that were designed to increase the total number of ounces beyond the initial NI 43-101 resource estimate released on July 6.
The best drill hole returned 577g/t of silver over 24.0m and 142g/t silver over 12.8m, US Gold said in a statement.
To date, the majority of the silver mineralization at El Gallo is in the Main zone, which is the primary target for discovering additional ounces, the statement said.
***
Panama-based Bellhaven Copper & Gold (TSX-V: BHV) announced that the company's first drilling program in Colombia is now underway at its La Mina porphyry gold-copper project.
The 2,000m program is focused on the La Cantera target, the company said in a statement.
Bellhaven has entered into an option agreement to acquire 100% of two contiguous properties providing the surface rights to a 672,500m2 area over the La Mina concession. The total price is US$500,000 and is due within 12 months.
By Mark Helmantoler

Ingeominas to concession coal, iron, gold areas - Colombia

Colombia's geology and mining bureau Ingeominas is preparing to concession areas containing coal, iron and gold deposits in different parts of the country, Ingeominas director Mario Ballesteros told BNamericas.
"The new mining law permits the creation of special state reserve areas for concessions and I believe this will be better for national and foreign investors," Ballesteros said.
The coal concessions will be awarded out during H2 and the final studies are currently being carried out.
For iron and gold, Ballesteros said that the studies are also being carried out to define the state reserve areas, after which the concession process will be launched.
The new mining law allows Ingeominas to define state reserve areas and concession them to the highest bidder. Under the old system, free areas were handed over on a first-come, first-served basis.
"A number of companies have expressed interest in participating in these concession processes," Ballesteros said.
Ingeominas is part of the mines and energy ministry (Minminas).
The new mining law was approved by the government in February.
By Harvey Beltrán

Copper industry's operational costs up 20% in Q1 - Chile, Regional

Operational costs at Chile's 11 largest copper producers during Q1 saw an average increase of 20% year-on-year, the country's copper mining research institute Cesco said in a report.
The largest increase was registered by Anglo American Chile, the local subsidiary of the London-based diversified resources group Anglo American (LSE: AAL), which posted a 78% rise compared to the first quarter of 2009 to US$561mn.
The increase was mainly explained by a substantial change in the comparison parameters in the year-over-year period as the company started sales and distribution of its attributable copper output from the Collahuasi copper mine - in which it holds a 44% stake - in April last year, according to the report.
Canadian miner Barrick Gold's (NYSE: ABX) Zaldivar copper operation saw the largest decrease in operational costs, down 15% to US$86mn.
Revenues and Ebitda registered by copper producers all over the world grew by 56% and 103%, respectively, in the first quarter year-on-year, in line with the 111% increase registered by the red metal's average price in the period.
The revenues of copper producers in Chile were higher than those registered by international companies, mainly because of the latter's more diversified portfolio, according to the report.
Meanwhile, global copper production decreased 4.8% in Q1, while Chile saw 3.1% growth in output mainly driven by Collahuasi, which increased production by 18.5% in the period.
By Victor Henriquez

Earnings Roundup: Azteca, Comercio, Ripley - Peru

The Peruvian unit of Mexican microlender Banco Azteca reported a loss of 1.8mn soles (US$638,000) for the second quarter as it continues to find its way in the market since opening its doors at the beginning of 2008, according to filings with local securities regulator Conasev.
The loss was an improvement over the 4.7mn-sol loss in the year-ago quarter, and together with the good results from the first quarter, the bank was able to report a 5.6mn-sol profit during H1.
That profit compares favorably to the loss of 6mn soles reported in 1H09.
However, despite its youth, the quality of the bank's credit portfolio is worsening. It reported an non-performing loan ratio of 9.78% through the end of June compared to 6.16% in June 2009.
***
Small Peruvian bank Banco de Comercio reported earnings of 1.8mn soles in the second quarter, up 64% from the year-ago quarter.
The bank saw its financial income rise only slightly to 38.7mn soles, though its financing costs dropped 17% from 1Q09 to 13.4mn soles.
The drop in financing costs helped push Banco de Comercio's gross margin up 21% to 25.4mn soles.
The bank's credit portfolio stands at 973mn soles through the end of June, an increase of 7.3% since December.
***
Banco Ripley Peru, the consumer finance arm of the retail giant, reported earnings up 10.5% in Q2 to 11.5mn soles over the year-ago quarter, though income from the half increased 41% to 25.5mn soles.
Gross income for the bank has actually dropped during the year, but as has been the case for many other financial companies, a steep drop in financing costs has led to a fatter bottom line for the bank.
Banco Ripley saw its financing costs drop by 21% in the second quarter compared to 2Q09, with financing costs for the half down by a similar amount.
By Peter Krupa

Interbank has enough capital to maintain credit growth for four years - VP - Peru

Peru's Interbank will be able to grow its loan portfolio at the current rate for the next four years before the bank will need to seek new capital, VP for finance Jose Antonio Rosas said during a conference call on the Q2 earnings of parent company Intergroup Financial Services (IFS).
"Given our expectations for growth, considering how much capital we have now, how much we expect to capitalize our earnings and how much available cash we have at our holding company, we expect to grow for at least four years before we need any more new capital at interbank," Rosas said.
Interbank had a loan portfolio worth 10.7bn soles (US$3.78bn) through the end of the second quarter, up 14.8% since end-2Q09. Rosas mentioned further in the conference call that the bank is aiming for 20% portfolio growth this year.
The bank portfolio remains almost evenly split between commercial and retail lending. Rosas added in the conference call that the bank is seeing its net interest margin on commercial lending tighten as economic growth heats up and banks vie to attract corporate clients.
BANK FLAT, IFS EARNINGS DOWN
Interbank saw its earnings nudge upwards by only 0.6% in the second quarter compared to the year-ago quarter to 102mn soles. Group-wide, IFS earnings dropped 3.6% compared to 2Q09 to 123mn soles. In a release on its earnings, IFS said that with one-time financial earnings taken out of the totals, recurring income increased 4.6%Chilean investment bank Celfin Capital noted that the earnings were below its forecast of 134mn soles for the quarter, partly due to an unexpected stability in provisions - the investment bank had expected them to fall by 11% year-on-year, rather than the slight 0.8% decline reported.
Celfin said it maintains its projection that the bank's loan portfolio will grow 19% in 2010.
By Peter Krupa

Bottling company to build US$23.5mn recycling plant - Argentina

Argentine bottling company Cabelma will invest US$23.5mn to build a recycling plant in the General Pacheco district of northern Buenos Aires province.
The plant will recycle PET plastic and will be built in two phases, paper La Nacion reported.
In the first phase, the company will install a bottle-washing system using Sorema technology. The second phase will consist of an extrusion process using Swiss technology, the report said.

DuPont's Latin America sales up 20% in Q2 - Brazil

US chemical company DuPont's (NYSE: DD) second quarter 2010 sales in Latin America increased 20% year-on-year to US$700mn, the company said in a statement.
Latin America accounted for 8% of DuPont's global revenues, while sales in emerging markets together climbed 32% in the period.
Global sales were US$8.62bn in Q2, up 26% compared with US$6.86bn in the prior-year period, attributed to 21% higher volume, 5% higher local selling prices, 1% benefit from currency and 1% reduction from portfolio changes.
All segments had double-digit sales increases, the statement said, with more than 25%volume growth in electronics and communications, performance materials, and safety and protection segments.
Net income attributable to DuPont jumped to US$1.16bn in the period versus US$417mn in 2Q09.
As a result, the firm increased its full-year earnings guidance to US$2.90-US$3.05 per share, excluding significant items, from the previous US$2.50-US$2.70.

Fertilizer prices steady in July - Scot - Brazil

After two consecutive monthly declines, Brazilian fertilizer prices remained steady in July compared to June due to stable raw material prices on the international market and seasonally lower demand, according to local consultancy firm Scot.
Urea prices have averaged 895 reais/t (US$506/t) in July compared with 897 reais/t in June.
Potassium chloride is being sold for 1,105 reais/t, down 0.14% month-on-month, while single superphosphate is at 585 reais/t, 0.11% lower than in June.
As demand is expected to improve in the second half, when 65% of annual fertilizer deliveries normally take place, prices are forecast to increase through the end of the year, Scot said.
Brazilian deliveries rose 4.2% to 8.62Mt in January-June from 8.27Mt in the same period of 2009, according national fertilizer distributors association Anda.

Solutia to expand Saflex capacity in South America - Regional

US performance materials and specialty chemicals company Solutia (NYSE: SOA) plans to optimize and expand its Saflex polyvinyl butyral (PVB) interlayer manufacturing capacity in South America, the company said in a statement.
"This region, specifically Brazil and Argentina, is a rapidly expanding market for the key automotive and construction industries," said Timothy J Wessel, president and general manager of Solutia's Advanced Interlayers division.
"We are optimizing our current operations and will be implementing future expansions to better position our customers to seize opportunities in the market."
Solutia currently has six manufacturing sites worldwide that produce Saflex PVB interlayers and encapsulants, including a facility in Sao Jose dos Campos, Brazil.

Edelpa opens solvents recovery plant - Chile

Chilean flexible packaging company Edelpa has inaugurated a new solvents recovery plant, according to a report on Chilean association of plastics companies Asipla's website.
The plant uses the latest technology to capture and reuse up to 90% of solvents, which evaporate into the atmosphere as a result of the production process and natural causes.
The US$7mn initiative is part of the company's US$25mn master plan to modernize production processes through the incorporation of new technology.
"We have the technology and now we must foster the cultural changes necessary to become more efficient. Only by doing this will we pass from regional leaders to international leaders in packaging," Edelpa general manager, Oscar Jaime Lopez, was quoted as saying.
Source - Business News Americas

DuPont, JBS kick off sodium methylate production eyeing local biodiesel market - Brazil

US chemical company DuPont (NYSE: DD) and Brazilian JBS group have partnered to begin producing 30,000t/y of sodium methylate in Pirapozinho, Sao Paulo state, to supply the domestic biodiesel market, DuPont's executive manager of chemical solutions in Latin America, Vinicius Soares, told BNamericas.
The project is the result of the companies' joint investment, in which JBS provides the production facility and DuPont the technology and product commercialization.
The decision to begin producing sodium methylate, used as a catalyzer in the production of biodiesel, was made due to increasing demand in Brazil. "We surveyed several local companies and they were unanimous in naming the difficulties associated with importing the product, citing logistics and freight costs, for example," Soares said.
According to the executive, it was relatively simple to start producing sodium methylate in Brazil, as DuPont already has three facilities in the US. "DuPont has been producing sodium methylate for over 40 years. Turning the plan into reality was an easy and quick process," he added.
In October, DuPont and the Bertin group, which was later incorporated by JBS, partnered to identify and map potential consumption in Brazil. In January of this year, the companies decided to advance with the project and construction was concluded after only six months.
"The module technology used in the project allows for building and increasing capacities very quickly," Soares said. Output at the Sao Paulo facility could easily be doubled to 60,000t/y. "Depending on how demand develops, DuPont will decide whether it will increase capacity in Sao Paulo or start an entirely new project in the northeast, for example," he added.
Soares explained that the development of the product was focused on providing customers with custom-made solutions and logistics efficiency, in addition to offering a sustainable technology approach and quality standards, so the client could purchase the best product at the best price.
BIODIESEL IN BRAZIL
With the biodiesel market skyrocketing in Brazil, according to Soares, the outlook for sodium methylate consumption is very favorable for the coming years. "In 2007, the biodiesel market practically didn't exist. Only after a few years, we saw the biodiesel admixture reach 5% in the country," he said.
According to DuPont's estimates, the sodium methylate market will reach 45,000t in 2010, increasing to 56,800t in 2014, considering the current admixture policy in place.
"Demand for biodiesel and sodium methylate is expected to continue improving. The admixture is currently at 5%, but there have been requests from the entire chain to increase that to 10%," said JBS new businesses executive director Jose Luiz Medeiros.
For DuPont, the construction of the plant in Brazil is in line with the company's strategy for the Latin America region and the new capacity will contribute to regional sales. The firm is also evaluating expanding the sodium methylate business to Argentina and Colombia, Soares concluded.
By Fernanda De Biagio