UPDATE: Mining Min: Venezuela Govt Will Operate Las Cristinas

Last update: 11/6/2008 4:07:25 PM

   (Updates with statement from the Mining Minister on gold production forecast) 
 

CARACAS (Dow Jones)--Venezuela's mining minister, Rodolfo Sanz, confirmed Thursday the government's plan to take over Las Cristinas gold mine, one of the largest in Latin America, operated by Crystallex International Corp. of Canada (KRY.T).

"The plan is to operate the mine next year," Sanz said.

Sanz added that the government intended to operate the mine directly.

Asked if Crystallex could expect any kind of compensation from the government, the mining minister said the government isn't considering that at the moment.

The mining minister said that the Venezuela hopes to double the country's gold production from 4 million ounces of gold in 2008 to 8 million ounces next year.

"We want to industrialize our gold production," Sanz added.

At 12:35 p.m. EST, Crystallex was trading on the Toronto Stock Exchange down 1 Canadian cent at 37 Canadian cents a share.

-By Darcy Crowe, Dow Jones Newswires; 58-414-249-6821; darcy.crowe@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=yaK... You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

November 06, 2008 16:07 ET (21:07 GMT)