Sunday, May 25, 2008
Breakaway Ministry of Mines to devolve from current Ministry of Basic
Industries & Mining (Mibam)
Following an in-depth background briefing, VHeadline Venezuela can
today reveal that, after heated discussions lasting more than two
weeks, the National Assembly (AN) Permanent Commission on Mining is forwarding a recommendation to President Hugo Chavez Frias to
immediately institute a breakaway Ministry of Mines devolving from
the current Ministry of Basic Industries & Mining (Mibam).



Earlier in the Chavez administration the issue of mining had come
under the tutelage of the Ministry of Energy & Mines (MEM) which was
itself broken into the current Ministry of Energy & Oil and Mibam.


According to sources in the AN commission, the new Ministry of Mines will have comprehensive responsibility under the new Mining Law when it comes into force and will gather together all institutional
responsibilities for the country's mining sector including devolved
supervision of contracting, revenues, engineering, exploration, labor
and other regulatory requirements including step-by-step issuance of all relevant permits.

It is unofficially understood that current Mibam Minister, Rodolfo
Sanz will take the key portfolio, while Luis Herrera Mendoza is
slated to take over the executive role at Mibam (or MBI - Ministry of
Basic Industries) which will include supervisory control of the
country's giant steel mills, aluminum production etc.

A key feature of the new Mining Ministry is aimed at having
comprehensive control of all aspects of Venezuela's mining industry to eliminate inter-ministerial confusions such as the
recent "differences" between Mibam's Rodolfo Sanz and MinAmb's Yuribi Ortega de Carrizales. The latter had caused widespread confusion in a throwaway statement that she will not allow open-pit mining in the Imataca Rainforest region but Mibam's Sanz says already established workings in southern Bolivar State are not covered by her unofficial edict but rather that there is general agreement that the Imataca should not be opened up for further exploration and/or exploitation.

(Note the last part which states "already established workings" are NOT covered by her unofficial edict and that Imataca should not be opened up to FURTHER exploration and/or exploitation.)