By Nathan Crooks and Charlie Devereux
Aug. 23 (Bloomberg) -- Venezuela’s Central Bank will start
bringing back about 16,910 gold bars from abroad soon as it
repatriates its reserves, President Hugo Chavez said today.
Venezuela, which has increased the percentage of its
reserves denominated in gold on the back of rising prices,
currently has about 12,360 of its 29,270 gold bars stored in the
South American nation, Chavez said today on state TV while
clutching one of the 12.5-kilogram (28-pound) bars.
“Venezuelan gold will start to arrive soon -- we’re going
to start over there in London,” Chavez said. “There is no
better place to hold our gold reserves than our own country.”
Chavez, who has said he wants to eliminate the
“dictatorship” of the U.S. dollar, has called on Venezuela’s
central bank to diversify its $28.1 billion in reserves away
from U.S. and European institutions. The 57-year-old former
paratrooper also signed a law today to nationalize the country’s
gold mining industry.
The law will allow the formation of joint ventures with
private companies as minority stakeholders and will establish a
royalty tax of 13 percent, Chavez said. The country is
evaluating a joint venture to operate the Las Cristinas gold
mine, which Venezuela plans to develop and holds reserves of
about $20 billion.

International Arbitration

Venezuela nationalized Las Cristinas in February and
terminated its contract with Crystallex International Corp., a
Canadian gold producer. The Toronto-based company filed an
arbitration claim with the World Bank’s International Centre for
Settlement of Investment Disputes and is seeking as much as $3.8
billion in damages.
“We’ve got the transnational companies out,” Chavez said.
“They can come and sue us wherever they want.”
Gold futures for December delivery fell $30.60, or 1.6
percent, to $1,861.30 at 2:30 p.m. on the Comex in New York.

For Related News and Information:
Venezuela economic snapshot: ESNP VZ <GO>
Venezuela government bonds: VENZ <CORP> DES <GO>
Venezuelan economy: TNI VENZ ECO BN <GO>
Venezuela international reserves: VNRS <INDEX> GP <GO>
Venezuelan annual inflation: VNVPIYOY <INDEX> HCP <GO>
Venezuelan annual growth graph: VNGGYOY <INDEX> GP <GO>
Stories on the Venezuelan bolivar: VEF <CURNCY> CN BN <GO>
Venezuela oil news: STNI VENEZOIL <GO>
Venezuela crude oil basket: CRVZVZBK <INDEX> HCP <GO>
Petroleos de Venezuela assets: PDVSA VC <Equity> GCAS <GO>
Top commodities news: CTOP <GO>
BP statistical review of world energy: BPSR <GO>
BP statistical review year-end oil reserve figures BPSR 1 <GO>

--With assistance from Daniel Cancel in Caracas. Editors:
Jessica Brice, Robin Saponar

To contact the reporters on this story:
Nathan Crooks in Caracas at +58-212-277-3716 or
ncrooks@bloomberg.net;
Charlie Devereux at +58-212-277-3711 or
cdevereux3@bloomberg.net

To contact the editor responsible for this story:
Dale Crofts at +54-11-4321-7735 or
dcrofts@bloomberg.net