Venezuela signs 3 Chinese agreements aimed at iron ore mining...

Venezuela signs 3 Chinese agreements aimed at iron ore mining revival

(www.mineweb.com)
Updated: 2011-09-07 15:16

Chinese-sponsored loans and equipment are aimed at boosting production and exports of Venezuela's state-owned iron ore producer CVG Ferrominera Orinco.

The Venezuelan government has signed three cooperation agreements with Chinese companies, totalling US$473 million, to boost production and transport of iron ore generated by state-owned CVG Ferrominera Orinoco in Bolivar State.

Venezuelan Minister of Basic Industries and Mining Jose Kahn said the agreement is aimed at helping the recovery of the nation's mining sector.

The projects will be financed with loans from Chinese funds and are scheduled to be completed in about 18 months. The debt will be repaid either in raw materials and/or currencies, according to Ferrominera's president.

The first agreement involves a US$200-million contract between Ferrominera and China's state-owned Wuhan Iron and Steel Corporation (Wisco Natural Resources) to increase Ferrominera's iron ore production capacity to 18 million metric tons by the end of this year including construction of a second pellet line. Also contained in the agreement are seven new 100-ton mining trucks, as well as the repair and supply of other mining and drilling equipment.

The second agreement for $112 million is aimed at expanding the Puerto de Palua in San Felix in Bolivar state, as well as improving rails, chutes and elevators at the port facility.

The third agreement includes a $161 million program by China's Communications Construction Company (CCC) to dredge a navigation canal in the Orinoco River to accommodate larger ships.

http://www.chinamining.org/News/2011-09-07/1315379821d49367.html