The Venezuelan government signed an agreement with an Indian company to operate CVG Ferrominera Orinoco, an anonymous person with knowledge of the matter is the source of the news. The info brought to mind the New Delhi-based Indian steel producer Jindal company. The Venezuelan Ferrominera is the country's largest iron ore production facility, and behind the scenes, it has created a news wave since outlets of Saturday.
However, according to the corporation's statement, Jindal Steel opposed the issue with the following words: "We completely deny signing any agreement or committing to any investment in Venezuela."
Ferrominera has an installed annual iron ore capacity of 25,000 mt. Moreover, it has 4.2 million metric tons of proven reserves. The facilities face years of mismanagement and lack of investment. In addition, factories are operating below capacity due to the energy crisis that hit the country in 2009, forcing the company to cut production to save energy.
In the beginning of the developing news, the union leader Carlos Ramirez told local Tal Cual newspaper in August that Jindal Steel Chairman Naveen Jindal visited factories in Bolivar state with technicians.
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