On their environmental permit...

IAMIB, Ruscaolin aim to reactivate US$500mn kaolin project - Venezuela

Friday, March 17, 2006

The Venezuelan state's mining institute (IAMIB) and Russian company Ruscaolin have decided to revive a US$500mn project to extract kaolin and install refineries and calcination plants in Bolí;var state.

"It will be through a concession where the state assumes no risk, only the other company does that. Ruscaolin will be in charge of carrying out the investments," IAMIB president Armando John Madero told BNamericas.

In 2003, Ruscaolin signed a letter of intent for the project with the Venezuelan government within the framework of the so-called First Venezuela-Russia Round of Investments.

"With this project, we hope to generate a very important economic impact in the zone known as Kilometro 88," added Madero.

The project - which will produce close to 500,000t of kaolin a year - plans to explore, mine, refine and calcinate kaolin, creating 300 direct jobs and 900 indirect jobs in the southern Sifontes municipality of Bolí;var state.

"A large part of the kaolin will satisfy national demand and the remainder will go for export," Madero said.

According to the executive, the Russian company has already explored many areas and is now working on the environmental permits to obtain the rights to start mining.

After that, they will commission the installation of the refinery, he added.

"The extracted material will be sent to Puerto Ordaz where it will be calcinated and then sent to downstream users to give it added value," said Madero.

The Sifontes zone is an important area for kaolin clay, which is used in paint, insulators, and rubber, in addition to fertilizers, pesticides, animal feed, paper production, and pharmaceuticals.

IAMIB operates as the authority for industrial minerals mining in Bolívar state.

It exercises exclusive control over construction rocks, decorative stones, and any other non-precious materials including marble, kaolin, clay, granite, sand, slate, and limestone.