State boost gold production in Venezuela


Caracas, 03 Mar. ABN .- The Central Bank of Venezuela (BCV) and the Ministry of People's Power for Basic Industries and Mining (Minam) work on a joint plan to promote gold mining in the country, with an estimated investment of $ 250 million.

This was stated the president of the BCV, Nelson Merentes, during a seminar for journalists on gold to be held at the headquarters of that institution until this Friday in Caracas.

Merentes said that Venezuela has a high potential gold mining sustainable and that the State intends to push it through the metal refining, to increase international reserves for this purpose into the country.

He explained that the first phase of the project, which they hope to realize in a span of approximately two years, is designed to transform the waste or "tails" which occur during the process of monetary gold mining, all with the joint participation of State and producers.

The international reserves of the Republic, consisting of gold and foreign exchange should be centralized in the Central Bank, in accordance with the provisions of Article 7 of the legal instrument that governs the institution. Also, the financial entity of the Venezuelan State is responsible for regulating all matters relating to the marketing of metal.

Currently most gold mining in Venezuela, approximately 60% is done through informal production sector, which does not comply with tax obligations, does not contribute to the increase in international reserves and, therefore, a distortion in the market and the economy.

"So far the operation has been carried out for smuggling and through practices that harm the environment (...) The BCV for that wealth from the gold has meaning for all people in the nation," he said Merentes.

Given the potential of gold in a context of global financial system crisis, in mid 2009 there was a change in the rules of the BCV, establishing a foreign exchange agreement that promotes the participation of companies, including small and medium-scale mining, the exploitation of metal, referred to a press release.

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