SA/VENEZUELA The price of 'stolen' oil By Matthew Hill and Prakash Naidoo SA may have to pay a political price for its dealings with Hugo Chavez

"Beware of Greeks

There are potentially lucrative mining and energy resources in Venezuela - but getting access won't be easy. "The country has been infected by the Hugo Chavez doctrine," the businessman says. Last year Chavez began a nationalisation drive in the petroleum, communications and electricity sectors.

WHAT IT MEANS Access may come at a political price Doing business there is not easy

Business practices are another problem. "The ethics of the workforce are not anything like you or I are used to. It makes the imposition of Western corporate governance very difficult," says the businessman. "It's bloody difficult, but if you get it right it can be very profitable."

But Canadian gold miner Crystallex argues that many problems in the country are "perceptional". Says spokesman Richard Marshall: "Overall, we have been pleased with Venezuela."

Crystallex has operated in Venezuela for 16 years. It has struggled to develop its Las Cristinas project in the Imataca Forest Reserve because of government's social and environmental concerns.

US-based Gold Reserve appears to be faring no better with its Brisas project, also in the Imataca Reserve.

Nor has the mighty Anglo American found it easy. It was notified in January that government had decided to scrap exploration and exploitation concessions at its 91,4%-held Loma de Niquel ferronickel operation, citing Anglo's failure to meet certain conditions.

Two companies that seem to have played their cards right - or, rather, the right cards - are JSE-listed Gold Fields and Russian-owned Rusoro. Russia supplies arms to Chavez, and Rusoro has been declared partner of choice for gold mining opportunities. Gold Fields stands to benefit from this, as it secured a 38% stake in Rusoro when it sold its Choco 10 mine to the company last year.

One industry insider says Gold Fields "got out just in time". Since then it has been quiet on Venezuela, saying it is only a passive investor in Rusoro.

bearing gifts" is the sceptical response of one respected businessman with Venezuelan experience, commenting on the recent pacts SA signed with the South American country.