BCV estimated 60% of gold production comes from informal work
03:55 PM Caracas .- About 60% of gold production in Venezuela is obtained from the hands of informal workers, thereby significantly reducing the fiscal contribution of gold mining to the state, officials of the Central Bank (BCV).

"Over 60% of informal production (gold) (...) this untaxed informal production and obviously this becomes a distorting element," said Barbara Rodriguez, manager of communication BCV at a seminar devoted to the matter reviewed by AFP.

Informal miners manage to extract the gold from Venezuela and sell on the international market without certification, but at a price well above the limit set by the BCV, which must comply with exchange control in force in the country since 2003, explained the charge.

In addition, these workers do not deliver the state in taxes to 3% of production value, as stipulated.

"The BCV can not buy (gold) to other price than the official dollar while the foreign market operates on the dollar (parallel or black)," added Rodriguez.

The BCV gold purchases have declined in recent years. In 2009 the regulator took 2.07 tonnes compared to 2.81 in 2008 and 4.64 in 2007.

Joseph Khan, director of the BCV, said the government plans to offer incentives to illegal miners and improve working conditions to correct this situation.

The Venezuelan government devalued the bolivar in January, which stood at 2.15 per dollar since 2005, and established a dual exchange rate: 2.60 per dollar for staples, remittances and public sector imports, and 4, 30 for other products, including gold and selling dollars from oil.

Venezuela is the 15th country in the world gold reserves with 363.70 tons of ore, according to official figures and produces around 4.2 tonnes.

A 2009 law stipulated that the great Venezuelan producers must sell 60% of its production to the BCV while the "small-scale mining" is required to sell 15% to the public entity.

The Venezuelan government, which since 2007 regains control of strategic sectors in recent months expropriated 500,000 hectares of gold fields.

http://deportes.eluniversal.com/2010/03/03/eco_ava_bcv-calcula-que-60_03A3523371.shtml