"The money is contributed by the Fondo Conjunto Chino-Venezolano [Chinese-Venezuelan joint fund] as we have been requesting," he said.

The fund is a government organization with the purpose of financing projects in Venezuela in the areas of mining, infrastructure, agriculture, energy, petrochemicals and others that drive economic and social development.

Two weeks ago, UM representatives asked the government for US$1.5bn to return operations at the plant to normal. The aim is to improve the production plant including improvements to the billet furnace, the installation of a new rebar line, rebuilding slab furnace 3 - which would allow for the production of stainless steel - as well as building a new hot rolling line to manufacture stainless rolled products.

For now, the resources approved by the government will be used to increase the production of profiles.

The Sidor plant, the biggest steelmaker in Venezuela, has a liquid steel capacity of 4.2 million tonnes per year, but in recent years it has not exceeded two million tonnes per year.

At the beginning of 2010, the company announced a 67.8% reduction in its investment budget for the year from the original US$168 million, to US$54 million, due to impact the energy crisis had on operations. The Sidor plant is located in Bolívar state's Ciudad Guayana.