VENEZUELA: CVG-Minerven president Luis Herrera confirms expropriation of Las Cristinas gold mine and more...

2009-07-29 02:17:36 - Venezuela'sstate-owned gold-mining company CVG-Minerven president Luis Herrera hasrevealed that, to date, the government has expropriated an total of500,000 hectares in the most important mining regions of the country... including the Las Cristinas gold mine. "We are rescuing more thanhalf a million hectares which were given out in the form of contractsand concessions to transnational companies since the 1990s," Herreratold ABN (the Venezuela national news agency).

VHeadline Venezuela News reports:

Herrera emphasizes the expropriation of the Las Cristinas mine (in thesouth-east of the country) where reserves are estimated at 35.2 millionounces and its operation was in the hands of the Canadian companyCrystallex until the end of last year, when the Venezuelan governmentannounced it would assume exploitation, through a Russian-Venezuelanconsortium. "The mine

is paralyzed because six years ago the state gave theopportunity to Crystallex to run it and all that happened has beenspeculation in the (North American) stock markets," said Herrera,without specifying when it will be taken back by the State.

In January, Venezuelan President Hugo Chavez announced that theMinistry of Basic Industries & Mines (Mibam) and the Russiancompany Rusoro Mining had formed a joint venture called VenRus CA toexploited the major gold deposit together (with the State). Thecreation of VenRus CA is part of the Venezuelan government's policy --in operation since 2007 -- to regain control of strategic economicsectors.
According to government figures, officials expect Venezuela's annualgold production to increase from 4.2 metric tonnes to 8.2 metric tonnesin the medium term.

VHeadline Venezuela News

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