Camiven: Reform bill might not be approved this year - Venezuela

Thursday, April 17, 2008

Gilberto Sánchez, the president of Venezuela's mining chamber Camiven, said the possibility exists that a reform to Venezuela's mining law may not be approved this year.

Previous reports have indicated that the government aimed to push a reform through under the framework of President Hugo Chávez's enabling law, which allows him to rule by decree on a broad range of issues for 18 months as of February 2007, bypassing the legislative branch.

A draft mining reform law drawn up last year by the ministry of basic industries and mining establishes that a private company can only participate in mining by forming a JV with the state, where the state holds the majority.

Speaking at the X Expomin International Congress in Santiago, Sánchez also said that Venezuela's mining production slipped 10% in 2007 compared to 2006.

Venezuela is host to several operations including the producing Choco 10 gold mine, owned by Canadian Rusoro Mining (TSX-V: RML), Anglo American's (LSE: AAL) Loma de Níquel mine and gold operations run by state-owned Minerven.

The country also is home to the 20.8Moz Las Cristinas gold deposit owned by Toronto-based Crystallex International (TSX: KRY) and the Las Brisas copper-gold project held by US miner Gold Reserve (TSX, AMEX: GRZ) which contains 10.4Moz gold and 1.3Blb (589,670t) copper.

Anthony Esposito
Business News Americas