Jindal Steel Denied Investment in Venezuela's Iron Ore Plant

SEATTLE (Scrap Monster): India-headquartered Jindal Steel and Power Limited (JSPL) clarified that it has not entered into any agreement or commitment to invest in Venezuelan iron ore producing plant.

Earlier reports by Bloomberg had said that the Venezuelan government has entered into a deal with JSPL towards operation of CVG Ferrominera Orinoco – the country’s largest iron ore producing plant.

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As per report, the agreement is regarded as the first entry by an international firm into the South American country, following sanctions imposed by the U.S in 2019. No details of the agreement were disclosed. Also, the country’s information ministry had declined to comment on the development.

Local newspapers had reported that Naveen Jindal, Chairman, JSPL along with technical staff had visited the plants in Bolivar state.

According to Ministry data, CVG Ferrominera Orinoco has an installed capacity of 25,000 metric tons per annum and proven reserves of approximately 4.2 million metric tons. The plants have been under-utilized mainly due to lack of investment, power shortages and several years of mismanagement. The production at plant was reduced as part of efforts to save energy.