Venezuela’s state-run iron ore producer CVG Ferrominera Orinoco (FMO) is optimistic for the year to come and expects to double its production, a top executive said.
“We have all the elements [needed to make it happen.] Prices are increasing, dredging at the [channels of the Orinoco] river is guaranteed until February as well as access to financing, which will be made with the company’s own resources,” said Isaias Chourio, the company’s CEO.
Chourio said FMO is currently producing about 700,000-750,000 mt/month of iron ore, but the company’s demand could rise, as the iron ore producer could supply other mineral products to companies like state-run oil producer PDVSA.
In addition to the iron ore, FMO produces what it calls as “orimatita,” a densifier used in drilling operations that lightens the weight of the oil column to strengthen the walls of the hole as the drilling progresses.