Representatives of Iranian firm KDO have met with the president of Venezuelan state heavy industry holding company CVG, Francisco Rangel, to ratify an agreement to develop an industrial complex for the mining of bauxite and the production of aluminum in the South American country.

The Iranians are also apparently interested in the experience CVG has acquired in the complete vertical integration of the process of aluminum making and have already received related technical and legal information. Once this has been analysed it is intended to organise a visit to bauxite deposits in Venezuela.

During the visit technical experts will decide on the type of infrastructure and services necessary to advance to the budget estimating stage.

In 2003, CVG signed an accord with Iran Tractor Manufacturing to work on the installation of a tractor plant in Ciudad Bolivar, in the Guyana region of eastern Venezuela. The US$15mn assembly plant is geared to produce an estimated 5,000 tractors.

The series of meetings form part of an agenda that involves a broader CVG expansion plan taking in Europe and the Middle East.