June 20, 2006
Venezuela's mining and basic industries ministry to invest US$900mn in 2006

(BNamericas.com) - "Venezuela's mining and basic industries ministry (Mibam) announced plans to invest close to US$900mn in the second half of 2006, state news agency ABN reported.

A large part of the sum will be tagged for social production companies (EPSs), subsidiaries of the national basic industries company (Coniba), ABN cited Mibam's deputy minister of investment promotions Valmore Vásquez as saying.

The deputy minister said the iron concentrator EPS will receive US$125mn, while the national steelmaking industry will be given US$124mn.

In turn, the seamless tubes EPS will take US$108mn, the rolling service will receive US$105mn, and the paper pulp processor will be given US$70mn.

Additionally, iron ore producer Ferrominera del Orinoco (FMO) will be awarded US$72mn for an iron ore fines sorter and transfer station, according to the report.

Vásquez also said that an investment of US$20mn is expected in the second half, earmarked for the formation of an aluminum by-products processing company in alliance with the Spanish company System Fuss".