Some people don't look at the heading here so I want to emphasize this

FROM 2007

Venezuela says undecided over Crystallex project
Wed Apr 18, 2007 6:36 PM EDT

CARACAS (Reuters) - Venezuela's mining minister said on Wednesday the government still has to decide whether to put under state control a gold project that Canadian miner Crystallex <KRY.TO> hopes to operate.

The official's remarks to Reuters contradicted a news article that cited his vice minister as saying the decision had been made to take over the project, causing the miner's stock to fall on Tuesday.

Crystallex's share price has been sensitive to news over whether the government -- which has been on a nationalization drive in other industries this year -- will allow it to develop the massive Las Cristinas project.

The main delay has been over the company receiving an environmental permit.

But investors also worry a mining law the government is working on could also mean that, even if Crystallex does gain its permit, it may be forced to be a minority partner with the government in control of any development of the project.

After his vice minister was quoted as saying the project would have to be converted into a "mixed company" where the state would take a majority stake, Mining Minister Jose Khan played down that position in an interview with Reuters.

Asked if Crystallex could operate the project should it receive a permit, Khan said, "I do not know -- the law has not been approved yet."

On Tuesday, as the share price was falling due to the vice minister's comments, Crystallex spokesman Richard Marshall said, "We've certainly had a few phone calls on the story, but... in any of the meetings we've had with the government, which have been frequent, there's nothing new that we're aware of."

Khan explained that the proposed law meant generally converting mining projects into mixed companies run by the state with minority private partners.

But he also left open the possibility that there could be exceptions.

"I do not know if Crystallex (will have to join a mixed company) because, in fact, I do not want to say that a specific company will do, but rather I am talking about companies generally."