Metals - Venezuela

Carbonorca secures 11% of Ormet

Carbonorca secures 11% of Ormet

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Venezuelan carbon anodes maker Carbonorca has secured 11% of US aluminum producer Ormet as part of a debt payment for the supply of carbon anodes, newspapers reported.

Ormet's debt with Carbonorca derives from the purchase of 180,000t of carbon anodes worth more than US$5.6mn, the papers reported.

"The proposal to convert debt into shares was regarded as the most convenient, therefore it was agreed to secure the 11,166 shares," Carbonorca said in a statement.

Carbonorca is based in Puerto Ordaz in eastern Venezuela. The company's carbon anodes are used in the aluminum reduction process, supplying aluminum companies Alcasa and Venalum.

State heavy industry holding company CVG holds 10% of Carbonorca while Alcasa has 45% and Venalum the remaining 45%.