Venezuelan state-owned iron ore producer CVG Ferrominera Orinoco (FMO) signed a deal with state-run steelmaker Complejo Siderurgico Nacional (CSN) to supply scrap for CSN’s operations, the company said this week.
Under the terms of the deal, Ferrominera will provide 90,000 mt of scrap to CSN to produce steel products including billets and rebar for the country’s housing program Gran Mision Vivienda (GMVV).
The deal follows a recommendation from the country’s basic and strategic industries ministry, which supports and incentivizes cooperation between state-run companies.
Ferrominera’s president, Isaias Chourio, said the iron ore producer supplied 6,000 mt of scrap to CSN’s Casima mill near Puerto Ordaz, where the material will be processed into semi-finished steel products, including billets.
CSN’s president, Jairo Rojas Leal, said the scrap supply deal will guarantee the local state-run steelmaker 14 months of operations.