By Harvey Beltrán / Business News Americas

Venezuela's basic industries and mining ministry (Mibam) "has no understanding of what companies need in the aluminum sector," union leader and member...

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Union leader: Bauxilum collapse would damage entire aluminum chain - Venezuela

The possible operational breakdown of Venezuelan bauxite and alumina producer Bauxilum would cause the country's entire aluminum production chain to collapse, union leader and member of the national assembly, José Gil, told BNamericas.

"Bauxilum is the foundation of the production chain and ties the sector together because [reducers] Venalum and Alcasa need alumina to manufacture aluminum," he said.

The general secretary of the Bauxilum's Suprobax union, Antonio Rivas, said the company is in a very difficult situation that could implode at any moment.

"If the plant collapses, the country's primary sector will collapse and take the entire downstream sector with it," he said.

Rivas said Bauxilum's operational scenario is complicated because there are no replacement parts, supplies or machinery and the company is suffering from a shortage of personnel to perform maintenance.

"Now that the referendum is over with its distractions, employees are asking that the government take care of the needs at our aluminum companies because a large part of the Guayana region's economy, and that of the country, depends on these firms," Rivas said, referring to the February 15 vote to change the constitution and remove term limits.

RECOVERY PLAN

The basic industries and mining ministry (Mibam) launched a program last week to inform employees about advances on a production recovery plan at Bauxilum to meet the operating and financial situation head on, state news agency ABN reported.

The recovery plan consists of three lines of action: recovery of output, which requires investments in machinery and equipment; improving processes; and optimizing costs and expenses.

State heavy industry holding CVG controls 99% of Bauxilum.

Bauxilum operates the Los Pijiguaos bauxite mine in Bolívar state and a 2Mt/y alumina plant in Puerto Ordaz city, both in southeastern Guayana region