Jindal Steel & Power Ltd. of India Takes Over Venezuela’s Largest Iron Ore Complex
In a significant development for Venezuela’s heavy industry, Jindal Steel & Power Ltd. of India has taken over operations at CVG Ferrominera Orinoco, the country’s largest iron ore complex. This marks the first time in over a decade that a private company has been involved in the South American country’s heavy industry sector.
Officials from Jindal are currently conducting inspections at the iron ore plants of CVG Ferrominera Orinoco, which is controlled by the state conglomerate Corporación Venezolana de Guayana. The five plants produce iron ore pellets and briquettes that are essential raw materials for steel manufacturing.
Jindal is aiming to export 600,000 metric tons of raw materials per month by the end of the year. To achieve this goal, the company plans to invest an initial $800,000 to upgrade existing equipment at the complex. However, the specific terms of the agreement between the Venezuelan government and Jindal have not been confirmed as both parties have not commented on the deal.
This partnership with Jindal represents a shift from Venezuela’s previous stance under Chavismo, which was reluctant to involve private companies in the country’s mining industry. In the mid-2000s, President Hugo Chávez reversed a privatization process initiated by previous governments, leading to the departure of several foreign companies from the sector.
Now, under President Nicolás Maduro, Venezuela is looking to reestablish foreign partnerships in its mining industry after 18 years. This move indicates a potential opening up of the country’s heavy industry to private companies, a departure from the previous state-controlled approach.
For more details on this developing story, stay tuned to Bloomberg for updates.