Miners' expulsion fuels Venezuela, Colombia feud

* Venezuela says miners deported due to environment damage

* Colombia views expulsions as abuse of rights

* Case stokes diplomatic tensions

By Andrew Cawthorne

CARACAS, Dec 2 (Reuters) - Venezuela justified on Wednesday the expulsion of foreign illegal miners for damaging an Amazon region, and accused Colombia of exploiting the case in a "psychological war" on President Hugo Chavez's government.

In the latest incident between the feuding South American neighbors, Colombia said this week that Venezuelan troops had sent more than 400 illegal Colombian and Brazilian miners across the border from makeshift gold camps.

Colombian Defense Minister Gabriel Silva called it a violation of the miners' human rights.

But Venezuelan Vice President Ramon Carrizalez defended the move, saying the miners were causing damage in the Yapacana national park of his country's Amazonas state.

"It's not how the Colombian government is trying to portray it, saying a mine was closed and a load of humble workers were left unemployed," he said. "Mining is prohibited in Amazonas state. They are using these people for political means."

Venezuela and Colombia have been sparring for several months in a growing diplomatic dispute that has damaged their $7 billion a year in bilateral trade and heightened fears of violence along their porous border.

"It is senseless that a routine activity in this country like the expulsion of illegal miners, people who are destroying the environment, be used as part of a media and psychological war, intimidation and threat to our nation," Carrizalez added in comments carried by state media.

Illegal gold mining is common in parts of Venezuela and Colombia, where miners often use water jets to blast makeshift pits and filter out gold with mercury, leaving behind scarred deforested areas and polluted waterways and rivers.

VENEZUELA ANGRY AT U.S. BASE ACCESS

The two nations' wider dispute centers round a decision by Colombia to allow U.S. troops more access to military bases.

That, says Chavez, sets the stage for potential U.S. aggression against socialist-run Venezuela from Colombia, whose president, Alvaro Uribe, is one of the firmest Washington allies in the region.

There have been a series of mysterious killings on the border -- where Colombian rebels and paramilitaries, plus drug-trafficking and smuggling bands operate -- and accusations of spying. Chavez has told his army to prepare for conflict.

Few expect a major war, but fears of violence are growing.

"The risk of a military clash between Colombia and Venezuela has risen in recent weeks from low to moderate, and is increasing," Jane's Intelligence Weekly said recently.

"A small incident, most likely on the border, could yet spark wider conflict, with Colombia now considering counter measures to address Venezuela's military superiority. International mediation would nevertheless be likely to forestall any descent towards all-out war." (Editing by Patrick Markey and Doina Chiacu) ((andrew.cawthorne@thomsonreuters.com; +58 212 277 2700; Reuters Messaging: andrew.cawthorne.reuters.com@reuters.net))