[China-Venezuela Joint Fund] Construction of New Pellet Plant and Production Upgrade at Ferrominera Orinoco (Linked to Record ID#37804 and #37808)

Project narrative

In May 2011, it was announced that Ferrominera Orinoco (FMO), which produces hot-briquetted iron or HBI, would be receiving $900 million USD from the China-Venezuela joint fund to build a second pellet production line which would produce 3 million tons of pellets. This project had previously been announced in 2009, but did not materialize. This project was funded by the $20 billion USD loan in #37804. According to the Office of the Vice President of Venezuela, the total investment in the project is $425,857,142.86 , with China contributing a majority of the funding. On January 22, 2015, China First Metallurgical Group signed a contract to work on the FMO second 3 million tons pellet production line project. According to the contract, China First Metallurgical Group will complete the dust removal of the ring cooler system, screening room, pellet yard, transfer station, belt and corridor, construction and installation of system engineering and facilities such as transformers, and chain grate room substations. MCC North is responsible for the project design and supplying equipment. According to a report from the Corporacion Venezolana de Guayana, the project's official start date was July 20, 2012 and it is 76.51% complete. The planned completion date is January 25, 2022. The China-Venezuela Joint Fund receives contributions from China Development Bank and FONDEN, and it is administered by BANDES. See Record ID#58677 for more information on the fund.