By Associated Press
Aug. 23 (Washington Post) -- CARACAS, Venezuela — President
Hugo Chavez signed a decree on Tuesday formalizing the
nationalization of Venezuela's gold mining industry, a move aimed
at giving the government total control over gold produced in the
South American country.
Speaking during a televised speech, Chavez also announced
the repatriation of $11 billion in Venezuelan gold reserves
currently held in U.S. and European banks would begin within
several weeks.
Chavez did not offer details how the new decree differs from
a 1965 law that nationalized gold mining. In 1977, the government
granted itself exclusive rights to extract gold. But he suggested
it would give authorities increased powers to evict wildcat
miners from illegal mines.
The president said that officials have contacted
representatives of the Russian company Rusoro Mining Ltd., which
controls one of Venezuela's most important gold mines, to
continue joint gold mining operations.
In February, the government canceled the gold mining
concession of a Canadian company, Crystallex International Corp.
In addition to repatriating gold reserves, the president of
Venezuela's Central Bank has said the government plans to move
other international assets to buffer the country against economic
woes in the United States and European countries.
Some analysts have said moving Venezuela's reserves will
make investors see the country as riskier.
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-0- Aug/23/2011 19:55 GMT