The Venezuelan government announced it will invest a total of $1.8 billion to optimize production levels at state-run iron ore and HBI producer CVG Ferrominera Orinoco (FMO), a government news agency said this week.
Out of the total budgeted investments, the Venezuelan government invested $800 million at the company’s concentration plant in Ciudad Piar, and will invest another $110 million at the Palua shipside, $555 million at a railroad, and another $425 million at a second railroad line.
“Once Ferrominera receives these resources it can generate foreign exchange of about $800 million/year,” said Isaias Chourio, president at FMO.
Chourio said FMO should reach full capacity three years from now.