August 24, 2005
CVG will receive higher contribution from basic industries

(BNamericas.com) - "The contribution from basic industries to Venezuela's heavy industry holding company CVG earmarked for regional development will rise to 2% from the current 1.5%, government news agency ABN reported.

Venezuela's mining and basic industries minister (Mibam) Víctor Álvarez made the announcement after he presented the plan to the national assembly's economic development special committee investigating CVG's restructuring.

For the increase to take effect, companies must increase productivity through technology upgrades, technical assistance and R&D, the minister said.

Álvarez said Mibam is advancing a six-year program to overhaul, expand and modernize basic industries for some US$12bn in investment.

The basic industries sector in Venezuela comprises aluminum reducers Alcasa and Venalum, alumina producer Bauxilum and other production companies.

Projects in the program include iron ore producer Ferrominera Orinoco's direct reduction plant and capacity expansions at Alcasa and Venalum.

'Likewise, the program includes increased gold mineral and diamond processing capacity, the creation of new steelmakers and new domestic production projects,' according to the statement".