Jindal Steel denies it agreed to invest in Venezuela's iron ore plant

By Fabiola Zerpa

India’s Jindal Steel & Power Ltd. says it hasn’t signed an agreement or committed to any financing in Venezuela. 
 

Bloomberg News on Saturday reported Venezuela’s government signed an agreement with the Indian company to operate CVG Ferrominera Orinoco, the country’s largest iron-ore producing plant, according to a person with knowledge of the matter. 

Jindal Steel & Power “completely and categorically denies signing of any agreement or committing to any investment in Venezuela,” according to a statement.

Ferrominera has an annual installed capacity of 25,000 metric tons of iron ore and proven reserves for 4.2 million metric tons. The plants have been working below capacity due to years of mismanagement, lack of investment and a power crisis that hit the nation in 2009 and forced the company to cut production to save energy.