KRY could explode upwards on Permit News.

November 08, 2007 – Comments (0)

"The permit has to be given to us at any minute," Luis Felipe Cottin, Crystallex's president in Venezuela,

Crsytallex Hopes To Secure Venezuela's Mine Permit Soon

Nov 8, 2007 13:35:37 (ET)

CARACAS (Dow Jones)--Canadian miner Crystallex International Corp. (KRY) expects to obtain an environmental permit soon that has delayed the start of operations at Venezuela's Las Cristinas gold mine for years, the company's president said Thursday.

"The permit has to be given to us at any minute," Luis Felipe Cottin, Crystallex's president in Venezuela, told a group of reporters in a press conference. "This is a bureaucratic process, and administrative matter that should be solved soon," he added.

Cottin attributed the delayed approval to the constant officer changes at the mining ministry including several mining ministers in recent years. This rotation, he suggested, means new people must continuously become familiar with the project at Las Cristinas, one of the largest gold deposits in the world.

Crystallex signed an operating contract with state mining firm CVG in 2002 to develop the mine and has since been awaiting a red light to begin construction.

The pending environmental permit would allow Crystallex to build the plant during a span of 18 to 22 months, Cottin said. The state would then issue an "exploitation certificate" that would allow the miner to begin production. Cottin noted, however, that getting the exploitation permit should be a much easier process.

So far the company has invested between $150 million and $170 million, including $100 million in equipment purchases that stand ready in case the government allows construction to begin. The equipment on standby includes trucks, mills, spare parts and other equipment that cannot be purchased or manufactured in the Andean country.

Cottin also dismissed the idea that a pending mining law could in any way affect the company's operations. "From the draft law proposals I've seen there's nothing to suggest that operating contracts could change," he said.

President Hugo Chavez is expected to issue a new mining law in coming months that would force all mining deals into joint ventures with the government. Chavez obtained special presidential powers in January for a period of 18 months, allowing him to pass laws without consulting congress.

Mining Minister Jose Khan has said that a law proposal calls for all deals, including operating contracts to become joint ventures with the government in control.

Crystallex has not considered the possibility of a joint venture agreement or what it would do under those circumstances, Cottin said. "Unfortunately, in this business there is no plan B," he said. "If and when this joint venture issue becomes a reality, we will evaluate it."

-By Raul Gallegos; Dow Jones Newswires; +58-212-564-1339; raul.gallegos@dowjones.com

(END) Dow Jones Newswires

November 08, 2007 13:35 ET (18:35 GMT)