11/14/98 - Venezuela Expects Drastic Rise in Gold Production
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CARACAS (Nov. 14) XINHUA - Venezuela"s gold production is expected to grow rapidly in the next few years thanks to massive investment growth by national and foreign private investors, the Energy and Mines Ministry said on Saturday.
Venezuela is expected to attract between 1999 and 2003 4.4 billion U.S. dollars in private capital to boost the mining of gold, coal, iron, nickel and bauxite.
To encourage investment, the government plans, among other incentives, to cut the current minimum income tax rate of 34 percent by 20 percent.
The ministry estimated that out of the 4.4 billion-dollar investment, 2.04 billion dollars, which will mainly take the form of strategic associations with foreign companies, will be used to raise the country"s annual gold output to more than 33 tons after the year 2003.
Venezuela"s gold output varies between 1.0 and 1.2 tons a year. Its gold ore reserves are estimated at 10,000 to 12,000 tons, representing 10 percent of the world"s total.
Venezuela boasts approximately 3 million hectares of land with gold prospection potentials, of which about 1.5 million hectares have already been assigned. Enditem
15/11/98 05:33 GMT |
