.....and is not very pretty what comes around ;unions blackmailing ,operators working on a go slow mode for their contract vindications ,old and deficient equipment and to top it all no money.

Welcome to the real world Mr.Hugo Chavez socialism seam to be ill equipped for the capitalistic ways.

Carbones del Guasare freezes operations at Paso Diablo mine - Venezuela

Monday, February 23, 2009 17:51

Venezuelan company Carbones del Guasare, which operates the Paso Diablo coal mine in western Zulia state, has declared an indefinite technical shutdown and "will keep operations closed," a company employee told BNamericas.

"It's a pressure tactic to avoid accepting our demands on the collective contract," the source said.

The source added that the company prefers to halt operations rather than agree to the union's demands after employees instituted a work slowdown in mid-February that affected 75% of production.

No company representatives were available for comment.

In May 2008, Venezuela's President Hugo Chávez announced that he had approved acquisition of a majority share in Carbones del Guasare.

At the time, state company Carbozulia controlled 49% of Guasare while US company Peabody Energy and London-based resources group Anglo American (LSE: AAL) each held 25.5% of the company.

Carbones del Guasare markets 50% of the coal produced by Carbozulia.

and more bad news for Chavez

Union: Alcasa losing out on roughly US$300,000 a day - Venezuela

Monday, February 23, 2009 17:05

Venezuelan aluminum reducer Alcasa is losing out on revenues of roughly US$300,000 a day because of an absence of investments to upgrade technology and since 176 cells are out of service, union leader and member of the country's national assembly, José Gil, told BNamericas

"The company has stopped producing a major amount of aluminum. We had projected 754t/d of production and we aren't even managing to churn out 550t/d, which is a major reduction," he said.

He added that markets are compromised because of the steep decline in metals prices. "This entire scenario puts us at a disadvantage."

The official said that under the current circumstances the company will not reach its production goal for 2009 of 200,953t.

The company also expected a progressive recovery this year that would improve operating conditions.

NO SOLUTION IN SIGHT

Gil said that Alcasa's president César Aguilar has not come forward with any proposals for recovering production or sales.

In its current state, the company needs assistance from the government and all organizations involved in its development, Gil added.

He said government support is urgently needed in the form of services or financing that would allow the company to improve its operating areas, fulfill work commitments with suppliers and meet agreements for raw materials, services and input supplies.

Alcasa requires US$1.1bn in investments, of which US$350mn is needed for launching an immediate plan to upgrade technology.

In 2008, the company churned out 169,229t of aluminum, some 6% less than 180,085t in 2007.

Production reached 13,060t in December, some 2,310t less than 15,370t year-on-year.

Located in Puerto Ordaz city, the company is 92% controlled by state heavy industry holding CVG and the remainder is held by US-based Alcoa (NYSE: AA).