"The Cristinas" can Yes being rescued by State written by editorial Sunday, October 31, 2010 city Guiana-El Dr. Amir Rojas, Professor of the University Venezuela Chair society, State and Constitution, says its strong position that leads him to believe in the presence of sufficient elements so that the Venezuelan Government, as well as did it on that occasion, can rescue definitely Las Cristinas tenure.
In the middle of the dilemma posed by the known case which involved the Crystallex international company, Corporación Venezolana de Guayana, Ministry of energy and mines of the Bolivarian Republic of Venezuela - for that then named that way – representing the State and the "Las Cristinas", aimed at the exploitation of gold and copper in the Las Cristinas 4 plots project 5, 6 and 7, located in the areas of the municipality Sifontes State 88 kilometer Bolívar, arise diverse perspectives to legality - or annulment - negotiations.

After of the termination of the contract on the part of the Venezuelan State firms Placer Dome and MINCA, between July 15, 1999 and the final completion on November 16, 2001, the National Executive and the Council performs a new attempt to rescue to the Venezuelan Government concessions already 4, 5, 6 and 7 Cristinas deciduous. Dr. Rojas says in talks with our computer that this Decree is important to highlight articles 1 and 6, because they are, in his view, the key to the substance of the matter.

Article 1 of Decree No. 1.757, published in Official Gazette of May 7, 2002, expressed: "reserved to the national body of the Ministry of energy and mining Executive, exercise directly to the exploration and exploitation of gold ore found in deposits located in the areas of expired and quashed so-called 4 Cristina Cristina 5, 6 Cristina, Christina gold concessions 7, located in the municipality Sifontes State jurisdiction Bolívar".

Article 6, empowers the Ministry of energy and mines for the exploration and exploitation of that project could make of the CVG.

"In the exercise of the right navigation, which referred to in article 1 of this Decree, the Ministry of energy and mines is empowered to contract with Corporación Venezolana de Guayana or another entity the exclusive property of the Republic, the activities required to carry out such exploration and exploitation, technical and economic terms convenient for the rational exploitation of the aforementioned deposits exploitation".

Dr. Rojas explains that it is important to note these expressions: first "direct exercise" of the National Executive and secondly, the power to the CVG "or another entity the exclusive property of the Republic". CVG held the contract immediately with Crystallex.

If we are talking about a site that also had a conflict situation, we could mention that contract encuadraría inside of the assumptions of article 150 of the Constitution specifies that interest national and public contracts require the approval of the National Assembly, and even when it comes to foreign companies not domiciled in Venezuela as Crystallex. On the other hand, article 11 of the organic law of the General Attorney of the Republic said that all contracts in the public interest must be reviewed and approved by this agency. None of that was made.

Analysis of the University Professor leans towards the fact that the State is would be reserving uniquely exploitation of the site by its strategic character. We are talking of probably the richest continent, of between 8 and 20 million ounces of gold, with immense importance deposit not only from the point of view of sovereignty but also in employment generation and the Renaissance area. Became a strategic objective. Striking just the Executive empowers the Ministry of energy and mines, given immediately the power to the CVG to develop the project, and that same promptly the CVG gives all rights to a private company.

Furthermore stresses that the contract is not limited to the Ministry, its legal consultancy nor the Attorney to review the negotiation to take place between the CVG and a third party, but it obliges him to report to the Ministry within 10 days of signing the contract of.

In practice, when the Venezuelan Government in the reversal of the investment process was reversed, handing a particular foreign private $ 150 million invested $ 150 million the consideration that offered Crystallex was $ 15 million.

Crystallex, at the time held the contract, a conflict situation with the Venezuelan Government permission. Had challenged and the ownership of 4 and 6 Cristinas was credited. In a curious note Oppenheimer, Crystallex International President expressed the company desisted from all actions against the State, clear is, after the signing of the contract.

At that time, international, 57 foreign gold mining companies, ranking Crystallex ranked 52. It was a junior company to which even is you had suspended the quotation of its shares in the stock market because it did not have the necessary capacity.

On the other hand, Minca shareholders were Placer Dome, which was 70% of the shares, and the CVG, which was 30%. "We had 30% of the capital." "Now retrocedimos" says Rojas, and adds that "having a shareholding, we ended up signing a contract operations, and all rights that the Ministry gave the CVG were awarded to Crystallex." "In my opinion, gave more rights to which he had, why I speak of the invalidity of this contract".

"If we go back to the starting point, that is null for any invalidity to start without any effect." "Problem of termination of this contract on these grounds is" explains Rojas.

According to the signed contract, earnings for the State would be the regular legal obligations such as the Ministry of energy and mines of 3% holding, as provided for in article 90(2); tax cancellation cancellation between 1 and 3% royalty to CVG, against 30% who had previously; payment of tax on income; Crystallex liability to the cost of production and the payment of them care financing; and the decree that the CVG desembolsaría not money for the development of the project. This is what justifies affair.

Finally, Dr. Rojas expresses his perspective the situation, expressing that in his opinion, should be void contract with Crystallex, and also the Ministry with the CVG where delegates you that President tasked. The importance of negotiations requires absolute presence of the State in the whole procedure. (Agencies)

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