In a recent development, India’s Jindal Steel & Power Ltd. has refuted claims of entering into any investment agreement in Venezuela. This statement comes in response to a Bloomberg News report suggesting an agreement between the Venezuelan government and the Indian company regarding the operation of CVG Ferrominera Orinoco, the largest iron-ore producing plant in Venezuela.
In a clear and emphatic response, Jindal Steel & Power has issued a statement vehemently denying any such agreement or investment commitment in Venezuela. The company stated, “We completely and categorically deny signing any agreement or committing to any investment in Venezuela.”
Ferrominera Orinoco, with an annual installed capacity of 25,000 metric tons of iron ore and proven reserves of 4.2 million metric tons, has faced operational challenges in recent years. Factors such as mismanagement, insufficient investment, and a power crisis that struck the nation in 2009 have collectively led to the plant operating below its full capacity. To conserve energy, the company had to reduce production, further impacting its operations.
The denial by Jindal Steel & Power brings clarity to the situation surrounding their alleged involvement in the Venezuelan iron ore plant. While Ferrominera Orinoco grapples with operational issues, it remains to be seen how the Venezuelan government will address the challenges and potential partnerships in the future.
About Jindal Steel:
Jindal Steel and Power Limited, an Indian steel company headquartered in New Delhi, is a key member of the OP Jindal Group. In terms of tonnage, JSPL holds the distinction of being the third-largest private steel producer in India and is the sole private entity in the country engaged in rail production.
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