Venezuelan government intends to increase by 2013 the domestic iron ore output capacity by about 17 percent to 25 million mt per year from the current 21.3 million mt. As a long term goal, through 2018, the country's production of iron ore is to reach 30 million mt per year.
On January 30, Venezuela has reopened the country's biggest iron ore mine Cerro Bolivar, which was closed down in 1997.
Accordingly, Cerro Bolivar mine, which is located in southern Venezuela, is to be reactivated with Chinese investments of more $70 million and is to be operated with the technical advice cooperation from Swiss-based Commodities and Minerals Enterprise Ltd. The mine is expected to produce about one million mt of iron ore in 2009, and to increase its output to three million mt in the second year of operations. Moreover, the Brazilian construction company Andrade Gutierrez is to start construction of a new steel mill, which will be located in Ciudad Piar, close to Cerro Bolivar mine. The new mill, with a capacity of 1-1.2 million mt of crude steel per year, is scheduled to be commissioned in the fourth quarter of 2011.
In addition, Venezuela plans the construction of an iron ore concentration plant, with a capacity of eight million mt of lump ore, which is expected to start operations in September 2010.