Geographically the Las Brisas-Las Cristinas mine is located in the Sifontes municipality of Bolivar state, between the national parks Imataca and Gran Sabana. Although the certification will be ready between eight months and a year, it is already considered the largest gold mine in the world. Politically it is in the center of the diatribe. On the one hand, the accusations about the environmental damage that could cause in the area the exploitation of minerals gravitate. And, on the other, that it becomes the financial support of the government that, urgently of money, is accused of giving away not only the mining but also the oil wealth.

The 5-kilometer-long, 2.5-meter-wide, 500-meter deep reservoir holds 55 million troy ounces, certified worldwide, accounting for between 70 billion and 80 billion dollars depending on the ozone of gold. Last week the value was between $ 1,200 and $ 1,600.

This project will leave the country 1.4 billion dollars a year, that is, that will provide more resources than the Orinoco oil belt. In addition, it is expected to generate 4,000 direct jobs, and in 24 months 2.2 billion dollars will be invested.

Responsible for bringing this potential to the surface is the mixed company Ecosocialista Siembra Minera, founded on August 7, 2016 and whose share capital is distributed as follows: 55% of the Venezuelan state and 45% of the Canadian mining company Gold Reserve. This agreement makes it the first joint venture in the Orinoco mining arc with foreign capital.

Initially, the Reserve was owned by the Las Brisas, which is located in the southern part, but given the proximity and the flow of Las Cristinas, the Canadian miner negotiated with the government to make a joint exploitation. At this time, a lawsuit is being filed at the Conflict Resolution Center of the World Bank by Crystallex, which was stripped of the Las Cristinas concession.

Several gold multinationals are interested in this gold business, so Gold Reserve has partnered with a German company that will process gold, a source linked to the joint venture said.

He explained that the gold is very diluted and will be concentrated. "They are very small granites." The mineral in that form can be processed in China, Japan or Germany. The Canadian miner opted for the German company because, in addition to knowing the Venezuelan mine, "is dedicated to buy sand of this type in the world," the source added.

Gold production is already pre-arranged with the Germans, according to the source. They have a megaplanta that processes gold and copper, a mineral that is also found in Las Brisas-Las Cristinas.

And the way is free: President Maduro signed during ExpoVenezuela Power 2017 a decree, with the agreement of transaction and settlement, which allows the exploration and exploitation of gold and other strategic minerals. In addition, the company will be exonerated from the payment of the value-added tax on imports and rate by determination of customs regime to the definitive imports of movable tangible and new or used goods. It will also benefit from the same cost of electricity, diesel and gasoline that it applies to the government or related entities.

Legally armored?

Gold Reserve has been patient in the face of government default for the compensation it won after eight years of litigation at the ICSID for having revoked the Las Brisas concession in 2009.

As part of the negotiations to start forming the joint venture, the Canadian miner required the Venezuelan state guarantees to invest in the gold business.

One of them was enshrined in the Decree of Gold and other Strategic Minerals that President Maduro promulgated on December 30, 2015. Gold Reserve, unlike other foreign companies, will have no problem repatriating its capital. The source said that the legal rule states that gold can be traded abroad and charged outside. "Everyone who invests in mining knows they can repatriate their capital by getting their money back after it is marketed," he said.

The Canadian miner also has some cards up its sleeve in the hypothetical case that in Venezuela there is a change of government or that the National Assembly does not know the agreement for not having been authorized by that power. "The contracts of transnational companies with a Republic are recognized and subject to international arbitration rules. They are playing with the future of a new government. If you cancel the contract, I am active in arbitration rules and this time for 80 billion dollars, "the source said.

Almost there

95% of the project is ready for start. According to the source, it is bureaucratic obstacles and paperwork that have delayed. Gold Reserve, with the Piar Mission, mining brigades and communal councils, has practically gained entrance into the area. They hope that with these popular organizations synergy between the public and private sectors can be made.

Also, they are confident that, with the presence of the FANB, guerrillas, irregular groups and other criminals will withdraw because, among other things, the military must guard the explosives plant, which will be one of the largest in Venezuela.