September 29, 2005
CVG and Australian company will build an aluminium plant

(BNamericas.com) - "Venezuela's state heavy industry holding company CVG and Australia's Inalco have signed a letter of intent to build a primary aluminum reduction pilot plant, Venezuela's basic industry and mining ministry (Mibam) said in a statement.

The plant will be in Puerto Ordaz city in Bolívar state and have production capacity of 70,000t/y of aluminum. In a second phase, capacity will increase to 140,000t/y, the statement said.

This strategic alliance will use Venezuelan V-350 direct aluminum reduction technology, minister Víctor Álvarez said.

Parties to the agreement will work jointly on aspects related to shareholder stakes, capital contribution, plant construction and operation plus the commercialization of the new technology, the statement said without mentioning the project investment levels.

President Hugo Chávez's government a few months ago started a revision of the contract process with foreign companies, aiming to increase benefits to the state from the country's natural resources".