Venezuela: Government Inks FMO Port Expansion Deal
Ricardo Menéndez, the Venezuela’s industry minister, has inked a contract with China Railway Engineering Group (CREG) to begin works to increase the capacity at state iron ore producer Ferrominera Orinoco’s (FMO) Palúa port.
“The agreement is for US$112mn to begin the basic engineering works for the design of the expansion of the port’s loading area,” he said.
In March 2010, FMO began feasibility studies for increasing the port’s loading capacity from the current 3.5Mt/y of briquettes to 6.2Mt/y.
“We expect to have the increased capacity within 18 months,” he concluded.
According to BN Americas, last year the company signed three cooperation agreements with China to make the Orinoco river easier to navigate, restore the production capacity at mining operations and expand the port, involving a total investment of US$473mn.
Dredging Today Staff, May 11, 2012