1240 
MINERALS YEARBOOE, 1978-7~9 
 
l'Institut Francais du Petroleo to study offshore petroleum possibilities
in Block III, an area which abuts Brazil's territorial waters. Also in 1979,.
ANCAP contracted with Resources Engineering and Management International,
Inc., for an overall evaluation of existing data on Uruguay's petroleum potential
on the continental shelf. 
The joint Uruguay-Argentina Salts Grande hydroelectric complex was inaugurated
in mid-1979. Argentina financed 65% of'the $1.5 billion cast and will receive,
by agreement, 83.34% of the power generated during the first 15 years of
operation. Plans are for Argentina's share to be gradually re-~ duced until
it rSàches 50% in 1995. Full capacity is not expected to be reached
until 1981. Under the joint agreement, Uruguay will not receive enough of
Salts Grande's power during the first years of operation to solve its immediate
shortage of electricity. Very low reservoir levels caused by a severe drought
at one hydroelectric facifity and a lengthy repair shutdown at a thermoelectric
plant necessitated severe power curtailments to private citizens and caused
some industrial disruption. The Palmer hydroelectric project was in the beginning
stages of construction during 1979, with completion scheduled for 1982. 
Feasibility studies continued throughout 1978 and 1979 for the development
of iron. ore deposits at Arroyo Valentines. In 1978, 
ore samples were shipped to Europe for assay, and the results were reported
as technically favorable. Further studies were underway in 1979W In late
1979, prequalifying bids were accepted from companies interested in developing
the deposits. In 1979, it was reported that the Intétnatiónal
Iron Co. Inc. will build a $30 million highcarbon ferromanganese plant at
Nuevá Pal- 
* mira. It is planned that the plant, which is scheduled to become operational
by 1981, will have two electric, furnaces and an ultimate capacity of 80,000
tons per year of ferroalloys. Initial capacity is expected to be 40,000 tons
per year. 
In 1978, Uruguay declared that increased production and export of semiprecious
stones were important to the national interest. As encouragement, the. Government
lifted all import taxes for 2 years on capital goods used by this underdeveloped
indu~try~ Amethyst and agate foun4 in the Department of Artigas are the two
stones exported. 
In 1979, the Federal Institute for Geesciences and Natural resource~, Bundesanstalt
für Geowissenscbaften und Rohstoffe of the Federal Republic of Germany,
began investigations of nonmetallic mineral deposits in Uruguay. This work
was scheduled to be completed in September of 1980. 
 
' Physical scientist, Branch of Foreign Data.