Venezuela's Hugo Chavez threatens to nationalize gold mining

"We cannot allow national and transnational mafias to continue destroying our homeland," the Venezuelan President said during his regular Sunday broadcast

Author: Dorothy Kosich
Posted: Monday , 26 Apr 2010

RENO, NV -

After seizing the Las Brisas gold project from Gold Reserve and denying appeals for final approval of Crystallex's Las Cristinas gold mine, Venezuelan President Hugo Chavez has now threatened to nationalize gold mining concessions.

During his regular Sunday broadcast, Chavez said, "If we are going to exploit our gold reserves we will have to nationalize the lost, recover and put an end to the degenerative (system of) concessions...they have only served to deplete the rainforests, the mines, water supplies and the environment."

He called gold mining concession holders "crazy people" driven by capitalist greed who don't care about polluting the country's jungles while exploiting employees.

"We cannot allow national and transnational mafias to continue destroying our homeland," he said.

"We are going to exploit gold, we would have to nationalize all of this, take back and finish with the concessions," he declared.

Venezuela's Central Bank is planning to provide US$250 million of financing for gold production this year. The central bank intends to buy more than half the 20 metric tons of domestic gold production. Along with the country's mining ministry, the bank intends to build a gold refinery.

Meanwhile, Chavez criticized illegal wildcat miners, saying they also pollute the environment. "This is a crime that we cannot keep on permitting," he said.

Venezuelan authorities Saturday declared an environmental disaster in south-eastern Bolivar state as soldiers were deployed to control the miners.

"This has to end, without killing anybody, without torturing anybody, just applying the law," he said. Previous attempts by the Chavez Government to stop wildcat mining have led to violent protests by illegal miners.

During his tenure as Venezuela's president, Chavez has seized control of foreign oil, utility and metals companies. He expropriated the Las Brisas gold mine concession in October 2009. His government has repeatedly stalled and/or denied the final permits for the neighboring Las Cristinas gold project.