Venezuela – CVG, Inalco plan to build aluminium smelter
2005-10-07
Corporación Venezolana de Guayana (CVG), the state heavy industries holding company, signed a preliminary agreement to build an aluminium smelter with an Australian partner.
The CVG said in an e-mailed press statement that it signed an agreement with Windsor, Australia-based Innovative Aluminium Co. (Inalco) to undertake feasibility studies for a 70,000 ton aluminium smelter using Venezuelan technology. Calls to Inalco's headquarters weren't answered.
No investment figures or timeframe were given.
Venezuela is betting aluminium will extend its price gains this year as global growth boosts demand for the metal used in aerospace, packaging and auto production, helping attract investment.
Since Jan. 1, aluminium prices have risen 3.2 percent to $1,860 a ton. The CVG already has two smelters, both of which are undergoing expansion. Alcasa S.A. currently has annual output of 210,000 metric tons, while Venalum S.A. has production of about 440,000 metric tons a year.