Chaco, located on the border with Paraguay, ranks among Argentina’s poorest provinces. What economic activity there is comes mostly from farming and logging. That, in large part, explains why provincial authorities have leapt to the defense of a proposal by Vetorial, a Brazilian company, to build a US$200 million pig iron plant near Resistencia, Chaco’s capital. Pig iron is a key ingredient in the manufacture of steel, and project proponents say the Chaco plant will generate jobs by helping to supply steel mills not only in Argentina, but eventually also in Brazil and southeast Asia. Environmentalists contend the project would accelerate deforestation as trees are extracted from native woodlands to produce charcoal that is used to make the pig iron. Citing the project’s environmental... [Log in to read more]