Venezuelan ore producer to increase capacities

Venezuelan ore producer to increase capacities

The global increase in iron ore and pellet prices led Ferrominera Orinoco (FMO), a subsidiary of the Venezuelan government's Corooporacion Venezolana de Guayana's (CVG), to consider new projects that would expand its iron ore, pellet and DRI production capacities so that it can cash in on the booming market. One of FMO's projects entails a $180 million investment in the second phase construction of an iron ore concentrate plant being by built the Metchem-Duro Felguera consortium. The plant should become operational in 2006. FMO is also conducting further feasibility studies on expanding the Cerro Bolívar iron ore deposit near the company's Ciudad Piar mine in Bolívar state. The deposit is in close proximity to the new plant being built by Metchem-Duro Felguera consortium. FMO has already signed agreements with China Metallurgical Construction Group Corporation (MCC), China Beijing QMCC Engineering & Technology and Swiss Duferco for exploration works. In addition to providing the domestic market with iron ore and pellets, FMO also exports to Europe, Asia and Latin America.