| 02 Jun 2010 17:57 ET |
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* Russian-Canadian miner wants to export more gold
* May cut planned $200 mln investment if rule not changed
By Eyanir Chinea
CARACAS, June 2 (Reuters) - Russian-Canadian miner Rusoro
may cut a $200 million investment plan in Venezuela
unless President Hugo Chavez's government eases a restriction
on exports, the company's CEO said on Wednesday.
Rusoro, whose main interest is the Choco 10 gold mine in
the southern state of Bolivar, has been obliged by law since
mid-2009 to sell 60 percent of its output to Venezuela's
Central Bank and offer another 30 percent for domestic sales.
CEO Andre Agapov, on a visit to Venezuela, told Reuters the
company wanted the bank to relax its rules so it could sell at
least half of its gold production abroad.
"We think the solution is political," he said.
Chavez has been increasingly courting investment from
Russia, China and others he views as important counterweights
to the West for financial and political influence.
"We are confident that the (Venezuelan mines) minister
(Jose) Khan will do his best to help us and all the people that
work for mining industries, to change articles one and two from
the Central Bank resolution," Agapov said
Rusoro had planned to sink $200 million into Choco over the
next two years in the hope of raising production to 500,000
ounces, from 125,700 ounces a year in 2009. But that would
depend on talks with the government, Agapov said.
"It all depends on the resolution. If we can't change these
articles, the investment will be very small. If we manage to
get the articles from the central bank (changed), the
investment will be very big," he said.
"In every other country except Venezuela all gold is for
export. If this is not possible, at least the minimum should be
50 percent."
Central Bank officials have said in the past the limit on
exports is needed to help it maintain gold reserves, which were
pegged at 364 tonnes in February, according to latest
statistics.
Bank officials were not available to respond to Agapov's
comments.
Rusoro's production from Choco in the first quarter was
25,142 ounces, 34 percent less than the same period last year.
Company officials say operations have suffered from
Venezuela's currency distortions which mean it has had to
import machinery and goods at a free-floating "parallel" rate
-- which hit 8.2 bolivars to the dollar last month -- while
repatriating profits at the official controlled rate of 4.3.
Rusoro bought the rights to Choco from South Africa's Gold
Fields for $525 million in 2008, Agapov said.
Chavez has said he wants to exploit the Las Cristinas and
Brisas gold reserves with Russian allies like Rusoro, instead
of Canada's Crystallex and Gold Reserve which
have the rights to those mines respectively.
"But for the moment nothing has been done from the
government," Agapov said.
"They still belong to different companies," he said.
(Writing by Andrew Cawthorne, Editing by Sofina Mirza-Reid)
((andrew.cawthorne@thomsonreuters.com; +58 212 277 2700;
Reuters Messaging: andrew.cawthorne.reuters.com@reuters.net))
Keywords: VENEZUELA RUSORO/
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