Nov 01, 2010, 02:14 A.M. | In 2002, Rangel Go'mez indicated that $550 million were required to develop the Cristinas After eight years of the going of the then president of the CVG to an, everything follows equal Cancellations

In his intervention in an, general Rangel Go'mez it expressed that the gains for the Venezuelan State will be the following:



1 Cancellation to Min-Energy of 3% of the tax of operation, according to article 90 numeral second of the Law of Mines.

2 Cancellation among 1% and 3% of exemption for the CVG by the gold production.

3 Payment of the ISLR of 34% of the income.

4 Crystallex assumes the production costs and the payment of the financing interests.

5 CVG do not disburse money for the development of the project. Hiring Between the excellent aspects considered by the board of directors of the CVG for the hiring of this operator was: The 1 serious situation of the neighboring communities to the deposit.

2 the request of the communities so that the CVG made agile the selection of the operating company.

3 the threat from invasion to the deposit.

4 the presentation of the formal proposal for the reactivation of the deposit on the part of a single company.

5 the execution of a social plan.

Besides these aspects, Crystallex indicated “its confidence in the country, proposing to fulfill the investments necessary to develop the deposit”, expressed general Rangel Go'mez, in that occasion, the 20 of November of 2002.

For that reason it added, the CVG comes to select to the Crystallex company of Venezuela a.c. so that it develops to the exploration and the gold operation of the concession the Cristinas, 4, 5, 6 and 7, to consider that it fulfills all the demanded requirements.

The president of the CVG of that then went to the Municipal Council of Sifontes that, in ordinary session number 35, decided to endorse to Crystallex like operating company.

Again he would be possible to ask itself, why was necessary the approval of the Municipal Council but not of an and the Office of the judge advocate general of a contract that era of public utility? Carmen Cheek

Special for the World

The 20 of November of 2002, Francisco Rangel Go'mez, by then president of the Venezuelan Corporation of Guayana, went before the Permanent Commission of Energy and Mines of the National Assembly to expose on the results of the CVG in the companies under his trusteeship.

In separate chapter he made mention to the Cristinas and he exposed that 550 million dollars were needed to develop the area. “The potentiality of gold is of 299,963 kilograms, with a tenor average of 12 grams by ton”, says a report to which it had Emen access.

Also it emphasized the potentiality of copper and limited that with this one and the gold 12,000 uses could be generated in the phase of construction, and that its operation would be magnificent revitalising of the economy to the south of the state Bolivar.

The civil servant remembered that the CVG had signed with Placer Dome, in 1992, an operation and exploration contract, but in 2001 some of the no mineral had been operation.

It explained that the Canadian company looked for a new investor, Vanessa Venture, and although the Venezuelan State hoped by the activation of the mine was no auriferous operation.

In the end, the general clarified to the deputies who terminated the contract by the breach of Placer Dome.

Thus he arrives himself at decree 1757, of April of 2009, published in the Official Newspaper of the 7 of May of 2001, and that arises from the instruction of president Hugo Chavez to the Ministry of Energy and Mines to engage the CVG or other beings of exclusive property of the Republic so that they initiated the works in the Cristinas.

Then the Venezuelan Corporation of Guayana carries out the transaction with Crystallex, company that is not of exclusive property of the State, reason why any lawyer in defense of the interests of the nation could invoke with base in that decree the invalidity of that contract between CVG and Crystallex.

After eight years of the attendance of Rangel Go'mez to the National Assembly and the Permanent Commission of Foreign policy one found out the reality in the zone, not yet it has stopped infortunio in the communities of the south of the state Bolivar and Crystallex did not begin the operations.

Francisco Rangel Go'mez exposed before the parliamentarians who after to receive the instructions of the Ministry of Energy and Mines received the quotes of Gold Reserve, Gold Fields, Barrick Gold, Anglian Gold, Gammon Lake Resources, Golden Delicious Corp and Crystallex and the unique company that a proposal of mining reactivation for the zone presented/displayed was Crystallex.

The income for the Venezuelan Be in favor of the development of the project were calculated in 530.542.745 dollars, without including the cost of the social plan.

Some will allege that by law any company that a contract with the Venezuelan State realises must fulfill all the demanded requirements.

That was approved like part of the report that presented/displayed the CVG before the Permanent Commission of Energy and Mines, which was signed by the deputies Luis Rooms, president; Carlos Santa Fe, vice-president; Calixto Grouse Rivers, Omar Fuenmayor and Luis Padilla.

They appear like part of that commission, Adel the Zabayar Samara, the deceased Luis Tascon, Oscar Perez and Ramon Jose Medina, but no signed the report.