Venezuelan President Hugo Chavez on Sunday announced a plan to set up a new state-run steel company.

The president said in a radio and TV program that his government would invest 1 billion US dollars in the company.

The new company would provide thousands of jobs, ensuring that Venezuela's abundant resources would be used "efficiently and with responsibility," Chavez said in the western state of Barinas.

Venezuela has sought to end the privatization of its state-run companies to regain control over oil, mining and industrial sectors.

The South American country is the world's fifth largest petroleum exporter. Mining is also a major industry thanks to its huge reserves of iron, bauxite and other minerals.

Source: Xinhua