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Article

6 Aug 2012

Author:
Dawn Paley, Vancouver Media Coop [Canada]

Rio Tinto Alcan talks with Paraguay coup regime

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Paraguay's major newspaper is reporting…that the [new] government of Paraguay…has agreed to resume negotiations with Montreal-based Rio Tinto Alcan for a $4 billion aluminum plant. The announcement follows a coup that led to the deposition of President Fernando Lugo…Corporate media have called the coup a "lightning-quick impeachment," but Lugo himself has said his removal constitutes an "institutional coup"…According to Lugo, the coup was the work of a handful of economic elites and members of the political old guard…Prior to the coup, Montreal based Rio Tinto Alcan was in negotiations with the Lugo government regarding the company's plans to build an aluminum smelter in Paraguay. Talks, however, had stalled because of a disagreement on the price Rio Tinto Alcan would pay for energy…Rio Tinto Alcan doesn't appear to be the only corporation taking advantage of Lugo's ouster. [Business & Human Rights Resource Centre invited Rio Tinto to respond. The company did not respond]