Venezuela's iron ore production to rise to 25 million tonnes by 2013 with US$8 billion investment

VHeadline Venezuela News reports: President Hugo Chavez says that iron ore production is expected to rise to 25 million tonnes per year by 2013, with an investment of US$8 billion. He was speaking during a ceremony at the reactivation of the Cerro Bolivar mine in Ciudad Piar with an estimated production of one million tonnes for 2009 ... "With this, we'll be increasing production 25% for all ores."

• Current production is in the order of 21.3 million tonnes, including 18 million tonnes of raw iron ore and 3.5 million tonnes of liquid steel.

According to a report in the regional newspaper, Correo del Caroni, the President did not mention the effects of the international financial crisis on the Venezuelan steel industry, considering that the fall in prices and demand has already stopped most of the regional briquettes producers, with relevant repercussions in production, sales and income.

Chavez said that a new iron ore concentration facility is scheduled to start operations in September 2010, "allowing for increased yield from the higher grade iron reserves." The President revealed that US$57 million has been approved for a second stage and that "an additional $149 million is required during 2009 to keep the project going ... $57 million for the first quarter, which is the amount I'm approving now."

As a long term goal -- thru 2018 -- production is estimated at 30 million tonnes ... 25 million tonnes raw ore and 5 million tonnes of liquid steel ... "this projection illustrates Venezuela's industrial projection for the coming decade," Chavez said.

Basic Industries & Mining (Mibam) Minister Rodolfo Sanz has pointed to an expected increase in iron ore production capacity which should raise steel production to 7.8 million tonnes per year by 2013 with the incorporation of the new 1.5 million tonnes per year Siderurgica de Orinoco (SIDOR) facility.

"We're going to increase Sidor's capacity from 4 to 6 million tonnes with a total of $200 million in investments this year," Sanz said adding that it is important to note that steel production from Sidor dropped 729,000 tonnes, to 3,578,000 tons in 2008 ... 16.9% less than 2007 production of 4,308,000 million tonnes.

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