Anglo to answer Venezuelan claim

CHARLOTTE MATHEWS

Bloomberg reported that Carlos Medina, president of the evaluation, prosecution and control subcommission of the country’s National Assembly, said on the Venezuelan government’s website that Loma de Niquel “puts thousands of lives at risk”.

Anglo spokesman Pranill Ramchander said Loma de Niquel took pride in its environmental record but would collaborate with any probe because it believed in transparency.

Venezuelan President Hugo Chavez has taken a strong stance against western-owned mining companies, while forming closer alliances with Russian investors.

Venezuela has stopped Crystallex and Gold Reserve from developing concessions at Las Cristinas, one of the world’s biggest unexploited gold deposits, on environmental grounds and said it would mine the ground in partnership with Russian-funded company Rusoro.

Gold Fields sold its stake in the Choco 10 mine in Venezuela two years ago to Rusoro in exchange for cash and a 38% stake in Rusoro.

This is not the first time the Venezuelan government has raised difficulties for Loma de Niquel.

In January last year it cancelled the mine’s exploration concessions, citing Anglo’s failure to meet certain conditions. It said Anglo had not maintained roads in the vicinity of the mine or provided workers with low- cost food.

Between late December and early January, Loma de Niquel had to close temporarily because a slag deposition permit had not been renewed, but operations restarted at the end of January on a temporary arrangement.

Loma de Niquel is Venezuela’s largest mining company.