Minera Las Cristinas (Minca) is putting together the last details for the final hearing before the World Bank's International Centre for Settlement of Investment Disputes (ICSID) over the Las Cristinas gold deposit in Venezuela's Bolívar state, Minca's legal representative Mariana Almeida told BNamericas.

"At the hearing, the parties will present their experts and state their cases after which the judges will take their time to make a final decision," Almeida said.

In 1992, Minca signed a 20-year contract with state heavy industry holding CVG to explore, develop and mine Las Cristinas, after which the company invested US$185mn.

In November 2001, CVG unilaterally withdrew the contract with Minca and issued a nationalization decree for Las Cristinas in May 2002, leading to the arbitration before the ICSID.

The hearing - which will take place in September - is the final step in Minca's fight over Las Cristinas, despite having been open to reaching a friendly agreement with the government.

"We have never been opposed to a deal. In fact, we have always expressed interest in reaching a friendly agreement that meets the needs of both parties," Almeida told BNamericas in February this year.

PAYMENT

If the ICSID rules in favor of Minca, the government can choose two forms of payment. It can either give the mining area back to the company or pay compensation, according to Almeida.

"We are asking for the area to be given back but if this does not happen we have estimated a US$1.05bn compensation payment for Las Cristinas," Almeida said, adding that any payment will depend on the tribunal's interpretation of the circumstances.

The company is expecting a positive ruling.

CRYSTALLEX

In September 2002, CVG awarded Toronto-based Crystallex International (TSX: KRY) a contract for the development of Las Cristinas.

However, earlier this year Crystallex announced that it also filed a request for arbitration before the ICSID against Venezuela due to the termination on February 3 of the mine operation contract.

Las Cristinas has proven and probable reserves of 464Mt grading 1.13g/t containing 16.9Moz.