Investment of $1.6-2.3 billion needed to restart Venezuelan aluminum industry: Wood Mackenzie
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Update time : 2026-01-21 18:16:25
According to a report from Wood Mackenzie, restoring Venezuela's idle aluminum sector requires an investment of US$1.6-2.3 billion. Although the country once produced more than 600,000 tons of aluminum annually, output dropped to zero by 2025. Reviving this industry could help address the North American primary aluminum deficit, which surpassed 5 million tons last year.
The recovery plan involves several projects. Rebuilding the Los Pijiguaos bauxite mine requires US$100-200 million, while rehabilitating the Interalumina refinery costs US$500-600 million. The largest expense is the US$1-1.5 billion needed to fix the Venalum smelter.
Success depends on more than capital. The industry must overcome chronic power instability from the Guri hydroelectric complex and aging infrastructure. Investors also require governance reforms and potential tariff-free access to the US market to manage risks. If these conditions are met, the full value chain could return within three years.
