The takeover follows a recent deal with the Nicolás Maduro government. Jindal officials are currently conducting inspections at the iron-ore plants of CVG Ferrominera Orinoco, a state-controlled conglomerate with five plants producing iron-ore pellets and briquettes for steelmaking.
Jindal plans to export 600,000 metric tons of raw material monthly by year-end, with an initial investment of $800,000 to upgrade existing equipment. Details of the agreement remain undisclosed as neither the Venezuelan government nor Jindal has confirmed it. This partnership signals a shift in Venezuela's historical resistance to involving private firms in its mining industry, which has been tightly controlled and underinvested.
Former President Hugo Chávez reversed privatization efforts in the mid-2000s, leading to the exit of several international companies. Now, President Maduro aims to revive foreign partnerships. Ferrominera, with an annual capacity of 25,000 tons and proven reserves of 4.2 million tons, has been operating below capacity due to years of neglect and a power crisis. Output has declined significantly over the years, reflecting the broader challenges faced by Venezuela's metallurgy sector, which has seen a drastic reduction in the number of private companies since 2000.
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