after what initally seemed to be a negative story to appease the shorts that pay off the news sources (quick summary all is fine with KRY and GRZ):

Mining chamber: Concessions may be suspended for non-compliance - Venezuela

Monday, April 28, 2008

Venezuela's mining chamber Camiven clarified that the government may suspend mining concessions that do not comply with rules established in the mining permit, "or those concessions that are abandoned," chamber president Gilberto Sánchez told BNamericas.

This is why the government has been reviewing concessions that meet these conditions, according to the executive.

"However, the situation in Venezuela is not the same as Ecuador's scenario because the laws are different in both countries. And in terms of the mining law, Venezuela is applying the existing law of 1999," Sánchez added, referring to a recent move by Ecuador to suspend mining concessions.

The chamber leader clarified the point after a conversation with BNamericas where he stated that the Venezuelan government may issue a decree suspending all existing mining concessions in the country.

The report caused concern among mining companies in Venezuela, which "continue working on their projects, fulfilling all legal requirements and investing in every aspect of developing their projects," he said.

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

The country is also 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-based miner Gold Reserve (TSX, Amex: GRZ) which contains 10.4Moz gold and 1.3Blb (589,670t) copper.

Harvey Beltrán
Business News Americas