CARACAS, Jan 13, 2009 (Dow Jones Commodities News via Comtex) -- Venezuela and Russia have created a joint company to operate the Las Cristinas gold mine, which is thought to possess one of the largest gold reserves in South America, President Hugo Chavez said Tuesday. Venezuela will take over the Las Cristinas gold mine from Canadian mining company Crystallex International Corp. (KRY) in 2009, Chavez reiterated.
"The Venezuelan state will take control of production of Las Cristinas in 2009," Chavez told the National Assembly during his yearly address, confirming previous announcements months earlier by Mining Minister Rodolfo Sanz.
Chavez said that Venezuela had created a joint company with Russia to exploit Las Cristinas. Chavez made no reference to Crystallex during his speech.
There's been widespread speculation that Venezuela would tap Russian mining company Rusoro Ltd. (RML.V) to help it run Las Cristinas. Chavez did not clarify if Rusoro was part of the joint company created with Russia.
The president said Venezuela has as its goal almost doubling its gold production in 2009 to 8.2 tons.
-By Darcy Crowe, Dow Jones Newswires; (58) 212 905 6304; darcy.crowe@dowjones.com
(END) Dow Jones Newswires
01-13-09 2031ET
