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.