Venezuelan state-owned steelmaker Sidor reached an agreement with iron ore producer Ferrominera to receive monthly supplies of the commodity, Sidor said.
Under the terms of the deal, Sidor will receive 300,000 mt of iron ore per month from Ferrominera, a state-run iron ore producer.
Sidor said the continuous supply of the commodity will help it produce pellets to run its steelmaking activities. Sidor did not specify the supply agreement’s time limit, but said it expects to have enough iron ore inventory to feed production until the first half of 2018.
Recently, Sidor said it lacked raw materials, as previously reported by SteelOrbis. Before signing the agreement, Sidor received 287,000 mt of iron ore from Ferrominera in March.
Sidor said the monthly supply is part of the company’s plan to increase crude steel output to 4 million mt by 2018.