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Venezuela Mining Min Criticizes Rusoro In Labor Dispute

CARACAS (Dow Jones)--Venezuelan Minining Minister Rodolfo Sanz on Monday criticized Rusoro Mining Ltd. (RML.V), which controls one of the country's most important gold mines, for not meeting its compromises with company workers.

Sanz also reiterated that the government started taking control of the Venezuelan unit of steelmaker Ternium SA (TX), which the government decided to nationalize after a prolonged labor dispute between management and unions.

Sanz added that the all the mining concessions in the country were "under review" after he left a meeting with Rusoro union leaders to hear about their labor complaints, which apparently focused on delayed bonus payments.

He said that the Russian Agapov family, which controls Rusoro, "made promises to its workers that had to be fulfilled."

Rusoro acquired the gold mine in December 2007 from South Africa's Gold Fields Ltd. (GFI), which stayed on as a minority partner.

"We are reviewing all the (mining) concessions...we're opening investigations on many companies," Sanz said Monday in comments broadcast by state television.

"The labor mess in the mining companies is over," Sanz said.

He added that the negotiations with Ternium were already under way over taking control of Sidor, its Venezuelan unit. The minister didn't rule out the possibility that Ternium could stay on as a minority partner.

He said that it was too premature to give figures on Ternium's possible compensation for the seizure, which was announced by the government last week.

Sidor is Venezuela's most important steel producer, with output totaling 4.5 million tons of liquid steel in 2007.

-By Darcy Crowe, Dow Jones Newswires; (58) 212 564 1339; darcy.crowe@dowjones.com

(END) Dow Jones Newswires

04-14-08 1512ET

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