Venezuela hopes to improve its production and transport of iron after signing three agreements with Chinese companies.

The contracts include the purchase of mining equipment, the expansion of a port in the state of Bolivar and the enlarging of a shipping lane in the Orinoco River.

According to Venezuela’s basic industries and mining minister Mr Jose Khan, the work encompassed by the agreements will be completed in roughly 18 months, state media reported.

The accords, between the South American country and Wuhan Iron & Steel Group, China Railway Group and China Communications Construction Co, are valued at USD 473 million. The projects will be financed with loans from Chinese funds and are scheduled to be completed in about 18 months. The debt will be repaid either in raw materials and or currencies.

The first agreement involves a USD 200 million contract between Ferrominera and China's state owned Wuhan Iron and Steel Corporation’s Wisco Natural Resources to increase Ferrominera's iron ore production capacity to 18 million tonnes by the end of this year including construction of a second pellet line. Also contained in the agreement are seven new 100 tonne mining trucks, as well as the repair and supply of other mining and drilling equipment.

The second agreement for USD 112 million is aimed at expanding the Puerto de Palua in San Felix in Bolivar state, as well as improving rails, chutes and elevators at the port facility.

The third agreement includes USD 161 million program by China's Communications Construction Company to dredge a navigation canal in the Orinoco River to accommodate larger ships.

(Sourced from Mine Web)