Venezuelan state-run iron company Ferrominera Orinoco will use a $900 million loan from China to increase output capacity, the firm said on Monday.
The loan is part of a long-term deal under which China has promised to provide OPEC-member Venezuela with $20 billion in financing in return for oil.
About half of the loan will be used to build a second pellet plant that will allow Ferrominera to increase output by 3 million tonnes a year, the company said in a statement. Some $460 million are earmarked for production and trade projects.
Ferrominera has a production capacity of 25 million tonnes of iron a year and exports about 40 percent of its output.
Venezuela's mining industry has been plagued by labor disputes, outdated equipment and low investment over the last few years.
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