Minerven gold remains far from its minimum quota export


December 7, 2010, 2:22 a.m. | 25% of gold produced Minerven is authorized to be sold outside the state mining company president know who might be the partner of the Brisas mine Projections 12

tonnes of gold production estimated to increase to 2012, the plan materialize.

2

tonnes of gold ore production will be achieved at the end of this year.

1.000

Bolivars million investment is the level estimated for 2011. Erika Hidalgo López

ehidalgo@cadena-capriles.com

Minerven, the Venezuelan state mining company, is exporting 25% of gold production that allows the resolution of the Central Bank of Venezuela (BCV), as reported to Emen the mining company's president, Luis Herrera.

The official explained that Minerven basically have two clients: the private sector and the BCV. The first takes 50% of production, and the second the other 50%.

But Herrera says that 50% for the private sector, remains in the country, since it is not exporting or a gram.

"The private self are selling outside the ore that we deliver in bars," added the official.

On the other hand, maintains that there are times when they prefer to sell more than 50% of the BCV, which they consider more expeditious and less complications.

The issue is survival

The cash flow requirements have forced Minerven figuring out. Herrera noted that the company has moments of very narrow, as the diminished production keeps them at bay.

This is the time to negotiate with private payment arrangements.

"With them (the private ones) have some advantages that we have with the BCV. We offer the gold. I say, I sell now, pay me and I give the gold in three months," the official head of state mining company. This advantage is not possible with the central bank. "The BCV me if I give him, he says.

"Then when you have problems with cash flow goes to a private or jewelry."

Sales are concentrated on the daily exchange rate in agreeing the pact. If up or down is part of the irrigation run both on one side and the other, but the price is established, said Herrera.

But clarified that this mode is not really ideal. "If I have enough resources, I have no need for private, because simply not looking. The issue is that I have to pick up a monthly payroll of 22 million Bolivars.

That said, Herrera did not miss the opportunity to comment on or otherwise respond to the statements that the political leader Andrés Velázquez made against him regarding the way in which markets the gold mining company Golden State.

"He says I sell more to private, I laugh, I have 2300 mouths to feed, then I have to find the resources to feed those mouths," says the official.

Minerven, as reported by Herrera, only companies selling their papers in order, properly permit by the Ministry of Basic Industries and Mining (Mibam), so that the mining company is not committing any offense.

Brisas de Cuyuni

Minerven has custody of the Brisas del Cuyuni mine, gold mine whose concession was revoked last year to the Canadian company Gold Reserve, which keeps this arbitration case against the Republic.

Herrera, who maintains that this is the right time to invest in the gold sector due to high prices at which gold has come, says his management might bring in the Brisas.

She says happily that if he awarded the Brisas to Minerven would implement a financing mechanism and association with any friendly country that allows them to move about the mine.

"It is not clear, then, who can be that partner. We Mibam precise instructions, we only have custody," he says.

But Herrera stressed the advisability of moving the mining project, as it would be a way to transfer about 1,000 redundant workers who have Minerven at the present time.

Herrera goals are to grow the current production of 2 tons to 12 tons in 2012. Estimated to invest 300 million dollars over three years to accomplish. While the plan for 2011 is around 1,000 million Bolivars disbursements.