CVG, Pdvsa approve 15 joint projects for US$486mn

Venezuela's state heavy industry conglomerate CVG and its oil counterpart Pdvsa have approved 15 projects in the iron ore and aluminum sectors, requiring joint investment of US$486mn, a CVG spokesperson told BNamericas. The projects are oriented to fortify the import substitution scheme, the national production system, generate employment and develop industrial technologies with less impact on the environment, the spokesperson said. The investment is part of an agreement unveiled by the two companies in June 2003 to promote the exchange of raw materials and technology. The deal guarantees that Pdvsa supplies fuels and lubricants to state-owned iron ore miner Ferrominera Orinoco and natural gas to the aluminum sectors and caustic soda to state-owned bauxite-alumina producer Bauxilum. It also supplies pet coke for the production of anodes in the aluminum industry. The agreement also ensures that the state oil company supplies petroleum-based tar as a substitute for asphalt-based tar used for making coal anodes. "This aspect is very important as this type of tar is one of the principal environmental liabilities the aluminum industry has," the spokesperson said. The use of petroleum has less impact on the environment and its use avoids many waste disposal issues. Representatives of the 15 projects are due to meet November 14 in Benito in Zulia state to present the development schedules, and Pdvsa will define its level of financing for each case.