Abstract-Mining alien say Venezuela stops permits gold
Wednesday April 30, 2008 20:22 GYT

Caracas (Reuters) - Venezuela plans to halt environmental permits for the exploitation of gold in at least two projects south west of the country, whose approval was delayed by years, reported on Wednesday the mining alien involved.

The Canadian mining Crystallex reported that the Ministry of Environment (MinAmb) denied permission to advance the work in the Las Cristinas mine, considered one of the largest gold deposits in the world.

While the Canadian Gold Book also explained that the ministry cited environmental reasons to stop the project Brisas gold, which had received a permit construction in March 2007.

Officials of the ministry were not immediately available for comment on the matter.

"MinAmb referred, inter alia, the existence of affectation and environmental degradation in the area, the presence of small miners and the Imataca Forest Reserve as its reasons for the decision," stated a document published in the Gold Book website the signing.

For its part, Crystallex International assured its shareholders that it received similar arguments for the measure, whose scope ignore both companies said.

Igual agreed to try to reverse the decision legally, a door that apparently would have opened the ministry.

In Venezuela has emerged a stream of nationalist hand in hand with the "socialist revolution" that President Hugo Chávez said lead, which last year included the nationalization of key sectors of the economy, including oil, electricity and the largest company telecommunications in the country.

So far, 2008, the Government announced the nationalization of the largest steel in Venezuela, Sidor, three cement companies in the hands of transnationals and various industries and intermediaries foodstuff sector, which has been beaten for several months by an intermittent shortages .

Mining rejects

Crystallex reported that works on several levels with the state mining consortium CVG and is "committed to defend their rights at Las Cristinas project and intends to respond vigorously to this issue according to their legal rights to protect the interests of our shareholders."

The company is awaiting approval of their operating permits from that in 2002 won the contract for Las Cristinas, which have proven and probable reserves of 14 million ounces of gold.

Gold Reserve, for its part, won a concession to exploit Brisas 13 years ago. In March 2007 received a building permit, although he hoped new approvals from various state institutions.

In addition, the Government, that can legislate by decree until mid-year, ensures that is taking a new Mining Act to regulate the sector, which had expressed concern to investors.

Gold Reserve de Venezuela said last year in an interview with Reuters that the Brisas project required a total investment of $ 650 million and begin operations in 2010, with about 1,000 employees.

Brisas produce 486,000 ounces of gold and 26,000 tonnes of copper per year, he added.

In Venezuela there are about 482 concessions and signed 509 contracts for operation by the State Corporation Venezolana de Guayana (CVG), a total area of 1.9 million hectares, according to official figures.

(With reporting by Patricia Rondon Espín and Frank Jack Daniel in Caracas and Cameron French in Toronto, edited by Patricia Velez)


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