The latest re Venezuela gold:
President Chavez signs decree nationalizing Venezuelan gold mining sector
A newly signed presidential decree not only nationalizes Venezuelan gold mining, but also establishes a royalty system.
mineweb.com
Author: Dorothy Kosich
Posted: Wednesday , 24 Aug 2011
RENO, NV -
Venezuelan President Hugo Chavez Tuesday signed a decree to nationalize the exploitation of gold and relative activities.
The decree also mandates the creation of joint ventures with state-owned majority control for the exploration and exploitation of gold "in order to reverse the serious effects of capitalist mining model, characterized by the degradation of the environment and disrespect for the planning, [and] the attacks on the dignity and health of miners and residents of surrounding communities."
It also establishes the boundaries of the joint ventures and their legal status, contracts for special services, and a royalty system of between 13% and 3%.
The decree now moves on to Venezuela's Supreme Court for their review and subsequent publication in the county's official gazette.
State news agency, Agencia Venezolana de Noticias (ANV) said that during a Council of Ministers held in the Miraflores Presidential Palace, Chavez recalled that gold "was expatriated when the bourgeoisie ruled the county."
"This is a measure with high national interest," he said. "I cannot understand how some groups are against it. They (bourgeoisie) handed over the gold, the body of the country."
Over the years, Chavez specialized in various forms of expropriation, seizing control of operations belonging to steelmakers, glass manufacturers, telecommunications, food packaging plants, agricultural businesses, oil refineries and other foreign owned businesses.
In a couple of years, his administration assumed control of gold mining projects belonging to Spokane's Gold Reserve and Toronto's Crystallex, both of whom are now seeking compensation.
Placer Dome walked away from the very promising Las Cristinas gold project 11 years ago. The project was acquired by Crystallex.
Hecla left Venezuela after nine years of operation, selling its La Camorra unit to Rusoro Mining.
One of the beneficiaries of Chavez's mining policies was Rusoro Mining, which operates the Choco 10 mine and the Isidora mine, a joint venture with the Venezuelan government.
On August 18th, however, Rusoro CEO Andre Agapov said, "We believe that the government's announcement is targeted toward the many illegal mining operations in Bolivar State that operate without government permits and continue to cause significant environmental damage through indiscriminate deforestation and the use of mercury."
"Gold produced by these illegal operations is often smuggled out of the country or sold illegally, and the government is now taking action," Agapov claimed.
REPATRIATING GOLD RESERVES
Meanwhile, the President of the Banco Central de Venezuela, Nelson Merentes announced Tuesday that 16,908 bars of gold bullion that remain in offshore banks will be repatriated to Venezuela. Each of the ingots weighs 12.5 kilos (441 troy ounces) and is equivalent to US$731,403 each in value, he said.
The central bank president said he expects Venezuela's total gold reserves will increase after the nationalization of gold mining and related activities. The gold reserves to be repatriated are valued at US$11 billion.
Merentes also attended Tuesday's Council of Ministers meeting in the presidential palace.
During the meeting, Chavez said, that although no country in the world would escape the effects of the world economic crisis, the revolution arrived in time in Venezuela.
The country will not fall into default thanks to the work done by the State to strengthen the domestic economy, he added.
"...Nobody knows how deep will go the capitalist crisis," Chavez stressed. |
