Venezuela not renew mining concessions expire
Wednesday June 24 2009 12:24

Maracay, Venezuela (Reuters) - Venezuela will not renew any mining concession that expires in the Latin American country, amid government efforts to restructure the sector, said on Wednesday the Minister of Mines Rodolfo Sanz.

The government of President Hugo Chávez has his sights on the concessions granted in the past, which claim to have benefited small economic groups, which in many cases never developed the mine and only used them as collateral for external financing.

"Granting that expires, I take mine, I take that area," the minister told reporters before the start of a summit of the ALBA regional integration mechanism.

The official explained that the government suspended the policy of concessions and from now on work under the concept of joint ventures and eventually operational contracts.

Several foreign companies such as Crystallex and Gold Reserve, maintain permits and concessions in the South American country, but have hampered its plans to exploit oil fields in which they operate.

(By Enrique Andres Pretel, written by Fabian Andres Cambero. Edited by Patricia Vélez)