Government to issue new mining permits soon - Venezuela

Friday, August 29, 2008

Venezuela's basic industries and mining (Mibam) minister Rodolfo Sanz announced that his ministry is close to issuing some permits to develop mining areas, an official from state heavy industry holding CVG confirmed to BNamericas.

"But the minister didn't specify where the areas are located that will receive the permits," the official said.

Sanz made the announcement during a tour he is taking through Bolívar state where exploration works were recently launched at the La Camorra gold concession in the El Callao zone.

The Las Cristinas gold project held by Canada's Crystallex International (TSX, Amex: KRY) is situated in the same state, "but Sanz preferred not to make any comments about development at that project," the CVG official said.

Crystallex recently reported that changes proposed at the Las Cristinas gold project were met with approval by the Venezuelan government. The changes are aimed at optimizing the social projects in the area, mitigating the impact of mining in the Imataca forest reserve and improving the remediation plan for the end of the mine's life. The enormous project has been on hold for several years due to permit problems.

Sanz's visit to the region is part of a government plan to reorganize the mining sector in Bolívar state and to regain control over mineral resources, the official said.

Venezuela's mining chamber Camiven estimates that the sector will need investments of US$10bn over the next five years to make it as competitive as other countries in Latin America.

Harvey Beltrán
Business News Americas