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Message: Rusoro Mining slows investment plan for 2010
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Rusoro Mining slows investment plan for 2010
May 03, 2010, 6:16 pm | Accounts gold $ 25
million this year will invest in expansion and development of the mine located in El Callao.
$ 200 million investment was provided for the first three years of the plan.
$ 800 is the cost of producing an ounce of gold for Rusoro, while the international price last Friday was $ 1,178.3. Erika Lopez Hidalgo
ehidalgo@cadena-capriles.com
Rusoro The Russian company may not undertake its investment plan for this year, this newspaper revealed a source close to the mining company.
Production costs are viable cash flow suitable for the development of the first stage of the plan, provided over $ 200 million.
The origin of the crisis in the Russian adjective mining is a decision resulting from the Venezuela Central Bank (BCV). There is established a mandatory way it is sold (to BCV) 60% of gold production for the domestic market, provided that the company is private or minority of the Venezuelan State.
The Russians are not spared so far, as the state maintains operating mines Rusoro just 5% of the equity pie. Therefore are not susceptible to preferential treatment
The source said that another important reason driving the decision not to pay it attributed to the firing of the dollar exchange, which becomes more onerous procurement of inputs.
The mining company is in critical condition since last December, when he saw the need to curtail its operations and granted full collective vacations forced almost the entire staff. They found that as less costly to maintain operations at the mine in Guiana.
Some air
Despite the persistence of forced sale of 60% of the production of the precious metal to the BCV, the new exchange rate of the bolivar gave him some oxygen to the cash flow of the company. Following this move by the government, announced on January 8, almost paralyzed Rusoro resumed his activities in the middle of that month.
However, the voice associated with the mining company says it is on air, since production costs are primarily handled other official fees other than those defined by the BCV.
Inputs for their operations are run parallel to the dollar, which has touched the eight dollars, according to the source account.
An ounce of gold refined in Rusoro has a production cost in the order of% 700 to $ 800.
While international prices, according to the price last Friday, was placed at about $ 1,178.3. "Nothing very encouraging, despite the new bolivar exchange rate of 4.30 per dollar," the source said.
Expected Amarga
Following the decision issued by the BCV, during the first half of last year, to increase the percentage of national gold sales to the State through the issuing entity, the mining company was seriously affected.
Then applied to the management of the Central Bank the possibility of modifying the rate of sales to accounts and viable and resume operations.
At that time the participant was assigned by the Central Bank director Joseph Khan, who had earlier directed the Ministry of Basic Industries and Mining, under the recently returned to face the crisis afflicting Guayana basic industries, as well as the complex world mining.
Khan kept braking the request had been made not only by the direction of Rusoro, but also by the workers own the company, who came in person at the premises of the Central Bank last December saying jeopardy the jobs of more than 800 people. He gave no dates, only referred to that would study the issue.
Despite the excellent relations between Russia and Venezuela, the mining company does not achieve a satisfactory response. With Khan back in the ministry supposed to be closer, in fact already requested. They hope that by engaging in the subject, can see more clearly the disadvantage of the measure, said the source.
They hope that there is greater likelihood that they would receive treatment associated with the state 50% -50%, reducing to 25% the sales of gold to BCV.
"If applied to other companies, why not extend it? We believe that all companies must operate under the same conditions," he said.
Rusoro managers say the current situation remains at risk the stability and operations of the company, its jobs and social investment.
May 03, 2010, 6:16 pm | Accounts gold $ 25
million this year will invest in expansion and development of the mine located in El Callao.
$ 200 million investment was provided for the first three years of the plan.
$ 800 is the cost of producing an ounce of gold for Rusoro, while the international price last Friday was $ 1,178.3. Erika Lopez Hidalgo
ehidalgo@cadena-capriles.com
Rusoro The Russian company may not undertake its investment plan for this year, this newspaper revealed a source close to the mining company.
Production costs are viable cash flow suitable for the development of the first stage of the plan, provided over $ 200 million.
The origin of the crisis in the Russian adjective mining is a decision resulting from the Venezuela Central Bank (BCV). There is established a mandatory way it is sold (to BCV) 60% of gold production for the domestic market, provided that the company is private or minority of the Venezuelan State.
The Russians are not spared so far, as the state maintains operating mines Rusoro just 5% of the equity pie. Therefore are not susceptible to preferential treatment
The source said that another important reason driving the decision not to pay it attributed to the firing of the dollar exchange, which becomes more onerous procurement of inputs.
The mining company is in critical condition since last December, when he saw the need to curtail its operations and granted full collective vacations forced almost the entire staff. They found that as less costly to maintain operations at the mine in Guiana.
Some air
Despite the persistence of forced sale of 60% of the production of the precious metal to the BCV, the new exchange rate of the bolivar gave him some oxygen to the cash flow of the company. Following this move by the government, announced on January 8, almost paralyzed Rusoro resumed his activities in the middle of that month.
However, the voice associated with the mining company says it is on air, since production costs are primarily handled other official fees other than those defined by the BCV.
Inputs for their operations are run parallel to the dollar, which has touched the eight dollars, according to the source account.
An ounce of gold refined in Rusoro has a production cost in the order of% 700 to $ 800.
While international prices, according to the price last Friday, was placed at about $ 1,178.3. "Nothing very encouraging, despite the new bolivar exchange rate of 4.30 per dollar," the source said.
Expected Amarga
Following the decision issued by the BCV, during the first half of last year, to increase the percentage of national gold sales to the State through the issuing entity, the mining company was seriously affected.
Then applied to the management of the Central Bank the possibility of modifying the rate of sales to accounts and viable and resume operations.
At that time the participant was assigned by the Central Bank director Joseph Khan, who had earlier directed the Ministry of Basic Industries and Mining, under the recently returned to face the crisis afflicting Guayana basic industries, as well as the complex world mining.
Khan kept braking the request had been made not only by the direction of Rusoro, but also by the workers own the company, who came in person at the premises of the Central Bank last December saying jeopardy the jobs of more than 800 people. He gave no dates, only referred to that would study the issue.
Despite the excellent relations between Russia and Venezuela, the mining company does not achieve a satisfactory response. With Khan back in the ministry supposed to be closer, in fact already requested. They hope that by engaging in the subject, can see more clearly the disadvantage of the measure, said the source.
They hope that there is greater likelihood that they would receive treatment associated with the state 50% -50%, reducing to 25% the sales of gold to BCV.
"If applied to other companies, why not extend it? We believe that all companies must operate under the same conditions," he said.
Rusoro managers say the current situation remains at risk the stability and operations of the company, its jobs and social investment.
http://www.elmundo.com.ve/Default.aspx?id_portal=1&id_page=18&Id_Noticia=17050
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