Venezuela looks to issue bonds backed by reserves of gold (Minister)

Venezuela's government studies to issue "this year" debt-backed bonds in the "important" gold reserves of the country, reported Wednesday the Minister of Basic Industries and Mining Rodolfo Sanz.

"We have a very important gold reserves (...) So we can issue bonds against it," Sanz told reporters.

"We are working and studying the possibility of the issue on the Central Bank of Venezuela (BCV) and await instructions from the president (of Venezuela, Hugo) Chavez," he said.

The minister said that the project is approved, bonds would be issued "later this year" and said that "it was time intensive use our mineral resources. We want to make this sector the second largest source of revenue in the country."

In addition, Sanz said that his office prepared an agreement with the Central Bank for the operation of multiple queues gold - mixed with chemical waste left by the artisan - in which companies may participate foreign capital.

"We have divided the areas of exploitation of gold in queues several blocks. Those wishing to participate with us by providing capital against future production may do so, because the process is much easier to get into a mine blast," he said.

"They can come foreign or domestic firms, provided they comply with the conditions of the Venezuelan state," he added.

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

lda / jt / rpl

http://economia.terra.com.co/noticias/noticia.aspx?idNoticia=201003311940_AFP_194000-TX-EET28