IMHO..This article is from May 19 and may give some perspective of what has transpired and may transpire in the future. It says a review of the mining sector had begun prior to KRY's denial date. There was a suspension of all activities through Mibam and Minamb to grant new licenses in order to sort through all of the concessions and non active mines. The whole premise behind all of this is that VZ was at that time going to bring mining back in a big way to go JV with the state and also to get as much tax money as possible.

Fast forward to June...the review is over (at least for KRY) and KRY is found in good standing since they already are owned by the state and have a contract set-up to collect royalties and taxes. They are called back to the table by the gov't.

The permit has not been handed out yet because their process is not finished. They still need to remove the illegal miners and pay them off which has begun today.

Survey mining anticipated conversion to joint ventures
May 19, 2008, 11:18, Category: Business


Mibam has Bs F 14 million to control exploitation rights
The new law will repeal the concessions, but the Government has already begun the transition. The mining industry privada will be limited until the approval of the new law to govern the sector.

The Government started to prepare the ground for reversing the
mining production model that will be established in the country once it approves the new law to govern the sector.

This legal instrument will repeal the existing system of temporary concessions and entrust the exploitation of minerals in joint ventures, whose majority shareholding will be held by the State Corporation Venezolana de Guayana.

The review was initiated one month ago of concessions granted by the Republic, the suspension of activities in some fields by orders of Mibam, and denial of release of Environment to grant new licences, that private mining activity will be limited until the State is legally empowered to increase their participation.

The deputy Angel Rodriguez, president of the Committee on Energy and Mines of the National Assembly, noted that the new law, whose approval is pending since 2006, is in the hands of President Hugo Chávez and will be adopted across the Enabling Act.

He noted that does not handle the details of the new legal
instrument, but ensures that mining mimics the pattern of joint
ventures which was established last year for the old operating
agreements of the Orinoco Belt.

Budget for review.

For this year, the ministry headed Rodolfo Sanz has 100.6 million
bolivars strengths to "establish a new socialist productive model"
in the areas of mining and basic industries.

Of this amount, 14 billion bolivars are earmarked specifically
to "monitor and control distributed 847 mining rights in the
territory to retrieve the areas that violate the formal duties
contracted with the nation and increase input tax miner."

Additionally, the 2008 Budget Act approved an additional 2.80
million bolivars strong for "controlling and monitoring the
operational management, economic and financial 35 holders or
beneficiaries of mining rights for the purpose of generating
information for the design of policies strengthen sustainable mining activity. "

In the midst of the review process, the Isidora mine, operated by
the U.S. Hecla since 2005, has had to suspend operations by orders of Mibam and the chairman of Minerva, Luis Herrera, who accuse the company of exploiting its workers.

Beyond the approval of resources for the monitoring of mining
activity, is the fact that once again served as labour disputes
argument to warn the transnationals that are responsible for
exploiting gold that some concessions could be revoked, others would not be renovated and others would not be permitted.

The minister Sanz announced the "comprehensive review" of
concessions gold at an event where a group of miners denounced the Rusoro Mining, operates Choco 10, in El Callao, Bolivar state, by an alleged debt by way of compensation that should be canceled .

Protection work.

The specialist in labour law, Juan Carlos Pro-Risquez, believes
illogical that announcement control of a strategic sector or the
nationalization of a company using as an argument labour disputes.

"I do not know to what extent there is a legitimate interest in
defending workers' rights. I hope it is, but it serves as an excuse
for companies estatizar I feel very special, because workers in
Venezuela have methods and means to raise their claims very
efficiently, "said Professor of Labour Law at the Universidad
Central de Venezuela.

He recalled that if workers complain to a company for violation of
their rights, the Labour Inspectorate denied Solvency Labor and this generates many problems for companies, thus they feel "obliged" to fulfill their duties labour .

The solvency, added the expert, makes it possible to seek currencies and make agreements and contracts with the state.