Venezuela iron ore producer FMO to expand production in China

Venezuelan state-owned iron ore producer Ferrominera Orinoco (FMO) has recently inked three agreements in the scope of it expansion program in the Chinese market. The total value of the agreements is $473 million.
 
Under the framework of the agreements, FMO plans invest to $200 million to increase its overall iron ore capacity to 18 million mt by 2012. The investment will include construction of an iron ore pellet production line in cooperation with WISCO International Resources Development and Investment Limited, subsidiary of Chinese steelmaker Wuhan Iron and Steel Co. (WISCO). In addition, it has also signed a $112 million agreement with China Railway No.10 Engineering Group for upgrading of port facilities. Another agreement will make the transportation of large vessels via rivers possible with the support of China International Telecommunication Construction Corporation (CITCC).
 
According to Venezuelan mining minister José Kahn, the funds for these investments will be lent by China.