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Opposition doesn't care about Project Carnalita

For the opposition, it makes no difference whether the project comes to the state now or not; from a purely political-electoral perspective, it is even more advantageous for them if the undertaking remains stalled, since its approval tends to yield greater dividends for those in power; however, by hindering the mining of the ore in the state, there is no guarantee that Vale will return to consider this project in the short term; Carnalita is not a priority for the mining company, which will only derive 5% of its total profit from it; thus, the opposition, with all the difficulties it has created, is paving the way for Sergipe to lose the largest private investment in its history; the weight of this decision is not only economic and social; it is also political.

For the opposition, it makes no difference whether the project comes to the state now or not; from a purely political-electoral perspective, it is even more advantageous for them if the undertaking remains stalled, since if approved it tends to yield greater dividends for those in power; however, by hindering the exploration of the ore in the state, there is no guarantee that Vale will return, in the short term, to look at this project; Carnalita is not a priority for the mining company, which will only derive 5% of its total profit from it; thus, the opposition, with all the difficulties it has created, is paving the way for Sergipe to lose the largest private investment in its history; the weight of this decision is not only economic and social; it is also political (Photo: Valter Lima)

Valter Lima, from Sergipe 247 - It was from state deputy Venâncio Fonseca (PP) that the clearest opposition position on the Carnalita project was heard. Beyond the discussions about who is for or against Vale's megaproject (with a projected investment of R$ 4 billion in the state), he was categorical: "the carnallite isn't going anywhere; if it's not mined today, it will be mined tomorrow." In other words, for the opposition, it makes no difference whether the project comes to the state now or not. From a purely political-electoral perspective, it's even more advantageous for the opposition if the project remains stalled, since if approved it tends to yield greater dividends for those in power. However, by hindering the mining of the ore in the state (in Capela, which holds 80% of the carnallite, to be more precise), there is no guarantee that Vale will return to consider this project in the short term.

As previously pointed out in earlier analyses, the carnallite mining program in Sergipe only reached its current level due to pressure exerted by former governor Marcelo Déda (PT) and President Dilma Rousseff (PT). Both negotiated an agreement with Petrobras, which ceded areas to Vale in the state to make the project viable. Although it plays a strategic role for the country, as it will reduce dependence on the international fertilizer market, for the mining company, the profit is small, since only 5% of Vale's revenue comes from potassium. The majority of the company's revenue, 75%, comes from the exploitation of ferrous minerals. 

But this has been ignored by the opposition, mainly by Mayor Ezequiel Leite (PR), the first to try to undermine the program by giving the decision on the location of the processing plant a political character. Since it is a technical decision, made by a company that is not entirely interested in the project, it is obvious that it will be very difficult to change the plant's location. In other words, what was heard from Minister Edson Lobão will also be said by the president of Vale, Murilo Ferreira: any change to the plant's layout is ruled out. And in all this charade, the opposition will justify its position against the interests of the State. It will blame a supposed intransigence on the part of Vale, without admitting its own equally non-negotiable position.

What exists at this moment is the (increasingly real) possibility of the complete loss of the largest private investment program Sergipe has ever seen, which would positively impact the lives of the population not only in Capela and Japaratuba, but throughout the entire state. And, of course, it would also have benefits for national agriculture. Governor Jackson Barreto (PMDB), the main stakeholder in the project's success, as he is primarily responsible for the good performance of the state's economy, demanded an alternative from Vale to the initial plan, which suggested the construction of two potassium distribution centers, thus balancing access to the taxes generated by the mining for each municipality. Jackson also proposed the creation of a law to provide legal security to this sharing, but the mayor of Capela is still not satisfied.

With his seemingly ardent defense of the interests of the city he governs amidst all this turmoil, he may already be paving the way for his reelection in 2016, but he is likely to cause immense harm to his allies, who will be competing not only for the votes of the residents of Capela (who may even give him a comfortable majority), but for the votes of all Sergipe residents – all of whom are harmed by the provincial vision of the opposition. 

Gain a better understanding of the case through the analyses produced by Sergipe 247:

Political dispute threatens Vale's megaproject.

Will the opposition turn Carnalita into a new Proinveste?

D-Day for Carnalita: Jackson, mayors, and senators go to the minister.

Below are the most recent articles about the project:

Meeting with minister regarding Carnalita project ends without agreement.

Márcio calls for unity among politicians for Carnalita.

Globo omits political and technical issues regarding Project Carnalita.

Ezekiel agrees to reconsider his position on Carnalita.

Government and Vale make new proposal for Capela

Exclusive: Vale abandons megaproject in Sergipe