Venezuela’s state-run steelmaker Sidor has signed a deal with HBI producer Comsigua for the supply of
iron ore pellets, the country’s news agency, AVN, said late on Monday.
In the next three months, Sidor will provide Comsigua 180,000/mt of
iron ore pellets, which will be used by Comsigua to produce 132,000/mt of HBI.
According to the government, the deal will help Comsigua to reactive its HBI production lines. By doing so, the company will now be able export the product overseaswhile also supplying the material domestically, the agency said.
Under the terms of the deal, the resources obtained by the joint production as well as by the commercialization of the product will be reinvested for the acquisition of materials, feedstock and other related supplies for the production lines of the two companies.
Ivan Hernandez, Comsigua’s president, said the measure will benefit both companies. The executive said the revenues of the HBI exports will be “equally” distributed between the two companies.