Venezuela is an unlikely taker for the IMF’s planned bullion sale.

The country plans to invest about $300m importing equipment to mine 36 tonnes per year. Tailings at a number of old mines show reserves of around 170 tonnes in the southern state of Bolivar.

Mining Minister Rodolfo Sanz said the project should create profits of $5-$6bn. If prices were to remain around $1,110 per troy ounce, his estimate would be about right. There are 32,150.7 troy ounces in a tonne.

The ministry will sign an agreement with the central bank next week to begin work, although it is unclear when the project itself will begin. It is also unclear whether the mines minister meant paper profits, with the central bank hanging on to the bullion, or whether the country intends to sell its finds.

Gold has risen significantly (almost 1 per cent) today from week-long lows.

http://blogs.ft.com/money-supply/2010/02/25/venezuela-plans-170-tonne-gold-harves/