Production Social (EPS)

Here is an interesting article from 2007 that talks a bit about Production Social (EPS) as mentioned in CJR's article:

Mibam proposes that the state gold mining market

By MARION LEON
EL UNIVERSAL

May 3, 2007

http://economia.eluniversal.com

The Ministry of Basic Industries and Mining (Mibam), jointly with the National Assembly is preparing a new amendment to the Mining Act, which will move to the previous legislative amendment was approved in first reading by Parliament in late June 2006.

This proposal will be raised in two months for consideration by the Executive Board for its approval under the Enabling Act and will be complemented by a regulation, said Vice Minister of Mines, Ivan Hernandez. He said that in the draft text is expected to delegate to the State the power to sell the gold that is extracted in the national territory, increase tax revenue by way of this economic activity, increase mining royalties and, among other things, provide the Company Producción Social (EPS) National Mining Company, no longer attached to the National Basic Industries Company (Conibo) but to that Ministry.

It also hopes the Government will "proceed to remove the mining concessions and the elimination of the nature of real estate law" in those spaces. He noted that a process is not to extend or renew the concession lapsed.

The official explained that it is proceeding to draft a reform because the former denotes "deficiencies in relation to what is and should be a process of revolutionary and socialist construction." And this time, said that mining is pursued to increase its contribution to Gross Domestic Product (GDP) which currently is 0.6% and double taxation, through "audits being carried out not only to private companies but to the state, as Ferrominera Orinoco, Minerva, Bauxilum.

Gold concentrate

Deputy suggested the amendment of a resolution of the Central Bank of Venezuela (BCV), whereby "is allowed to export up to 75% of gold extracted in the country. There should be rather than whether the State who commercializes through the central bank or a qualified entity, and leave a level of exports according to the ability of the country. " "This mineral is the Venezuelan state and the audit must be done through the state." Even the spokesman said, "extractions do private companies have to deliver the state to the market."

State mining

This law does not include mining restructuring its articles. Hernandez said that "you can not convert a miner monetarily. It is a culture, is an estate, is a kind of life, We must go to the industrialization and production processes that matter." The government estimates have eleven mining companies this year, which are grouped under the wing of the EPS Minera de Venezuela. "The purpose is that small-scale miners have involvement in the exploitation and the State shall assume the responsibility with them in that activity."

He also stated that "there will continue to deliver resources to the miners for their restructuring. This was a process that was completed by the Ministry of Environment. It was satisfying because momentary solved problems of the miners, but I think the state will provide definitive answers with the national mining project that is comprehensive and promote social inclusion of Minas Gerais. He reported that planned the formation of a Mineral Development Fund to equip and train their workers and environmental engineering to optimize production.

86.2% of concessions are inactive

- The reform of the Mining Act provides for the inclusion of a transitional regime to replace the existing concessions.

- The country has 760 existing mining rights, of which 413 represent concessions, 327 miners and 20 are contracts are contracts awarded by the former Ministry of Energy and Mines, a total area of 1,363,005 hectares of this total, 86, 2% is totally inactive.

- Urging public and private undertakings which have information on proven and probable reserves of the deposits to the south, to provide it to the government, said Vice Minister of Mines, Ivan Hernandez.

- Mine production expected for end 2007 is 14 tonnes against 10 tonnes in 2006, "because prices and government policies," he said.