Jindal Steel denies signing deal with Venezuela

Update: Jindal Steel completely and categorically denies signing of any agreement or committing to any investment in Venezuela

Jindal Steel Venezuela. Jindal Steel and Power Chairman, Naveen Jindal, has visited the plants in Bolivar territory with technicians.

update: Oct 2nd Monday: Jindal Steel and Power Ltd stated that it had neither signed an agreement nor committed to provide financing in Venezuela.

An agreement between Venezuela’s government and Jindal Steel & Power Co. will see the Indian company run the country’s largest iron-ore production facility, according to an Industry Insider report. This is the first time in years that an international company has invested in the country. 

In the coming months, the agreement is expected to be completed, generating many jobs and boosting economic growth. It’s also indicative of increased foreign investment in Venezuela and represents hope for the country’s struggling economy.

Nicolas Maduro’s government approved a deal with Jindal Steel & Power that would allow the company to operate the country’s largest iron-ore plant, CVG Ferrominera Orinoco. No specific details of the agreement, which was signed on Friday, have been disclosed.

The information department of the Ministry of Information and Jindal Steel & Power did not respond to requests for comment immediately.

The agreement is Venezuela’s first step towards releasing its metallurgic and mining industries to an international corporation, following the US sanctions in 2019, which will allow the country to become more international in its operations. Venezuela’s mining and heavy industries are all government-owned.

Read: Illegal gold Miners Accused of Destroying a Sacred Mountain in Venezuela

Ferrominera has a total annual capacity of 25,000 metric tons of iron ore and a proven reserve of 4.2 million metric tons. The plants have been operating below their potential due to mismanagement, lack of funding, and a power crisis that occurred in the country in 2009, this crisis led to the company reducing production to conserve energy.

The Jindal Steel and Power Chairman, Naveen Jindal, has visited the plants in Bolivar territory with technicians and the local media, the Tal Cual newspaper, reported on August’s technicians and the union.

In the absence of information from the government about the terms of the agreement, questions have arisen regarding the impact of the agreement on iron ore supply to local companies.

The association said a public and transparent economic opening is necessary, but this must be done in a public and transparent manner, according to Bloomberg.

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