By Nathan Crooks
Aug. 26 (Bloomberg) -- Petroleos de Venezuela SA, the state
oil company, and state miner Corporacion Venezolana de Guayana
will form a joint venture to develop gold mines in Venezuela,
the Information Ministry said today.
PDVSA, as the Caracas-based company is known, will hold 40
percent of the venture to develop mines including Las Cristinas
and Las Brisas, the ministry said in a statement, citing Mining
Minister Jose Khan. CVG, as the state-run heavy industry holding
company is known, will hold the rest.
The South American country will have “more precise
control” over its gold industry, and all output will be handed
over to the Central Bank, Khan said.
Venezuelan President Hugo Chavez on Aug. 23 said that PDVSA
would begin gold mining operations in the country after the
industry was nationalized this month. Venezuela took control of
the Las Cristinas mine, which may hold 27 million ounces of gold
reserves, in February after canceling a license held by
Crystallex International Corp., a Canadian gold producer. The
Toronto-based company is currently seeking as much as $3.8
billion in damages.

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>
Link to Company News: PDVSA VC <Equity> CN <GO>

--Editors: Jessica Brice, Robin Saponar

To contact the reporter on this story:
Nathan Crooks in Caracas at +58-212-277-3716 or
ncrooks@bloomberg.net

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