Guyana grants mining concessions in territory under dispute
The Venezuelan government does not oppose to operations of transnational companies in the Essequibo
Western Hemisphere
The Guyanese government has taken Venezuela's President Hugo Chávez at his word and is conducting competitive biddings of major areas for development of diverse minerals in the territory under dispute between both countries.
Between February and April 2009, the Guyana Geology and Mines Commission (GGMC) has put out to tender nine blocks in two major mining departments bordering Venezuela and within the area disputed by Venezuela since the 19th century.
According to the Commission, the government authorities expect that some 1,000 miners will be working in the area by the end of 2009. They believe that the number will exceed 5,000 workers in 2010. The area is rich in gold, diamonds and granite, among other minerals.
In March 2004, President Chávez made some historical statements that changed Venezuela's traditional position with regard to the area under dispute. The ruler said that Venezuela did not oppose Guyana's initiative to grant unilaterally mining concessions and contracts to transnational companies in the Essequibo.
Former Ambassador Sadio Garavini, author of several books on the subject and former head of the Venezuelan diplomatic representation to Guyana said that previous Venezuelan governments used Article 5 of the Geneva Agreement of 1966 to reject multinational investments in the Essequibo territory. Garavini said that this situation drove away major investors, due to the legal uncertainty and because it could hit their investments in Venezuela.
"It was a form to put pressure on Guyana and to force them to negotiate. But when Chávez said that he had no objections to the concessions, the situation changed completely," Garavini said.
Reyes Theis
EL UNIVERSAL
