Venezuelan state-owned iron ore producer CVG Ferrominera Orinoco (FMO) is operating at 10 percent its capacity or less, according to a local union.
A local union estimated the company would require at least 110 iron ore rail cars for the production of 1 million mt of the commodity, however, there are only 20 rail cars operating. Ferrominera has a 25 million mt/year iron ore capacity.
Venezuela currently faces a severe political and financial crisis, which has involved the US, Mercosur and the Lima Group. The Lima Group is made up of Argentina, Brazil, Canada, Colombia, Costa Rica, Chile, Guatemala, Guyana, Honduras, Mexico, Panama, Paraguay and Peru.
US Vice President Mike Pence met with Lima Group leaders this week to discuss alternatives for Venezuela. The US, the Lima Group and Brazil, support self-proclaimed president Juan Guaido.