Venezuela to Build Foundry in Cuba

Venezuela to Build Foundry in Cuba
Friday April 11, 3:05 am ET
Venezuela Teams Up With Cuba for Construction of Nickel-Iron Foundry

CARACAS, Venezuela (AP) -- President Hugo Chavez said Thursday that his
government has approved funding to build an iron and nickel foundry with
Cuba.

Cuba is among the world's largest producers of nickel, which is used to
make stainless steel. Venezuela and Cuba signed an agreement last year
to produce stainless steel using Cuban nickel -- a project slated to
involve some $1.1 billion in joint investment.

"We have large iron reserves, Cuba has large nickel reserves," Chavez
said in a televised address, adding that Venezuela has not made the
necessary alliances to process the metals domestically.

Chavez did not say Thursday how much money it would take to build the
foundry or where it would be located.

Since taking office in 1999, Chavez has developed close ties with
communist-led Cuba through a series of cooperative agreements involving
education, health and energy.

Among other agreements, Venezuela ships roughly 100,000 barrels of oil a
day to Cuba under preferential terms, while Cuban President Raul Castro
has sent thousands of doctors to treat the poor in the South American
nation.

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