Caracas, Venezuela (Platts)--10Nov2008

Venezuela's overall mining productivity is estimated to decrease 7% in
2008 in relation to 2007 figures, Venezuelan Mining Chamber president Gilberto
Sanchez told Platts. "The drop is the result of widespread labor unrest, the 
nationalization of certain companies like Sidor steel, the stalling of several
major projects, and heavier than usual rainfall," he said.

     Adversely affected are the country's major iron, steel, gold, nickel and
coal companies. "Sidor steel is a good example," noted Sanchez, "with its
productivity at only 60% right now. Before nationalization in 2002, it
produced 5 million mt of liquid steel and this year its output will be only
2.5 million mt." Sidor officials were not immediately available for comment.

     Camiven also said that there was less foreign investment in 2008, in
large part due to the country's currently downgraded risk rating. "However,
once the labor situation calms down, the mining sector should enter a more
balanced period in 2009," said Sanchez, adding that it was still early to
gauge the effect on Venezuela of the global economic recession.

		--George Soules, newsdesk@platts.com