Venezuela’s government and Jindal Steel & Power have signed an agreement for the Indian company to run the country’s largest iron-ore producing plant, marking the first entry in years by an international firm into the South American nation’s closely held companies.
Nicolas Maduro’s government signed off on a deal for Jindal Steel & Power to operate CVG Ferrominera Orinoco – Venezuela’s largest iron-ore plant – according to a person who asked not to be identified as the information hasn’t been made public. No details of the agreement, which was inked on Friday, were provided.
Venezuela’s information ministry and Jindal Steel & Power didn’t immediately respond to requests for comment.
The deal is Venezuela’s first step to open up operations in its metallurgic and mining industries to an international private company, after US sanctions hit the country in 2019. Venezuela’s mining and heavy industries are all state-owned.
Ferrominera has an annual installed capacity of 25,000 metric tons of iron ore and proven reserves for 4.2 million metric tons.
The plants have been working below capacity due to years of mismanagement, lack of investment and a power crisis that hit the nation in 2009 and forced the company to cut production to save energy.