mramirez@correodelcaroni.com

Individuals, companies or association to develop forms of exploration and gold mining in areas designated for mining activities in the country must sell to the Central Bank of Venezuela (BCV) all material obtained gold "with no character metal alloys contaminants and in any of its forms, "according to a joint resolution of the Ministry of Petroleum and Mining and the BCV, published in Official Gazette No. 40 692 of June 30, 2015.

The move adds to recent national executive movements around the mining sector, most notably the transfer of 100% shares of CVG Minerven Aurífera the National Company, owned by the BCV and Petróleos de Venezuela SA (PDVSA); and the operational and functional assignment of the Venezuelan Corporation of Mining SA, a subsidiary of PDVSA, the Sector Vice President for Finance.

Gold obtained must be sold to the BCV through centers established by the monetary authority, but prior to the sale of the extracted gold material miners or associations must "formalize their registration with the Provisional Registration of Sellers of gold, to be administered by the BCV "and present at the time of the sale an affidavit that states the origin of mineral offered for sale and the description of the processes used for extraction.

The measure is a still timid formal mechanism to reduce the anarchy of mining south of Venezuela, mainly in the states of Bolivar and Amazonas, where hundreds of miners from rudimentary methods used for the extraction of ore using mercury up hydraulic machinery for greater extraction of the precious stone.

Besides lawlessness and uncontrolled activity, most of the gold bearing material extracted in recent years is not reported to the BCV, which the authorities believe that there are many tonnes extracted in the country illegally.

The obligation to sell gold at BCV is not new. The last modification of Decree with Rank, Value and Force of Organic Law that reserves to the State the exploration and exploitation of gold, published in the Gazette Extraordinary No. 6150 of November 18, 2014, states that all the gold that you get as a result of any mining activity in the country, "will in principle compulsory sale and preferential delivery to the Central Bank of Venezuela, without prejudice to the right of the President to designate another body or bodies to which it must sell these gold resources. "

However, industry sources say that the BCV has been slow to make presence in the mining sector to enforce the measure.

Among the justifications that led to the resolution, the Executive indicates that it is a strategic objective "to develop the national economic strength, optimally exploiting the potential offered our mineral resources, using low environmental impact technology, which the aim is to double gold mineral reserves for use as tradable for strengthening international reserves ".

It adds that the Ministry with competence in mining and BCV take the necessary steps to acquire the gold ore from the primary activities of persons, companies or forms of partnership in areas for mining activities, "pending or strategic alliances conform mining brigades in the performance of small-scale mining is believe. "

The resolution urges all organs and agencies of the National Public Administration to direct the actions to ensure the implementation of the resolution and the "regularization" of people to carry out small-scale mining activities.

Compulsory sale of gold to the BCV will be valid until November 18, 2015, this period may be extended only once and for the same period of estimated relevance.

Maria Ramirez Hair