Venezuela’s Alcasa to Get $403 Million Investment From Government, China

A joint development fund between China and Venezuela will invest $403 million in CVG Alumino del Caroni SA after the state-run aluminum producer declared an operational and financial emergency, Venezuela Basic Industries and Mining Minister Jose Khan said.

Beijing-based Aluminum Corporation of China Limited will provide operational advice to the metal maker known as Alcasa, Khan said in comments carried on state television.

“This is going to give Alcasa an increase in production and an increase in its income,” Khan said.

Venezuela is increasingly looking to China for credit to fund development projects as self-described socialist President Hugo Chavez looks to distance the oil-producing country from its traditional trade partner, the U.S., amid the charges of “imperialism” he often repeats.

The $403 million is from a development fund previously established between the two countries. Venezuela Commerce Minister Edmee Betancourt on March 23 said that $6 billion from the fund would be available this month. The $6 billion is at least the third installment of a fund that was set up in 2007 and has received at least $18 billion in contributions.


http://www.bloomberg.com/news/2011-04-30/venezuela-s-alcasa-to-get-403-million-investment-from-government-china.html