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To: RealMuLan who wrote (37693)	9/21/2005 8:55:55 PM
From: Chispas	Read Replies (3) \| Respond to of 116555

UPDATE: Crystallex-Run Mine Belongs To Venezuela -Chavez . (Updates with complete Chavez quote, background on mine) CARACAS -(Dow Jones)- Venezuelan President Hugo Chavez said Tuesday his government is reclaiming national mining assets such as Las Cristinas, a gold mine operated by Canada's Crystallex International Corp. (KRY). "We're in the process of recuperation, of recovering our assets as in the case of Terranova, or as it happens with the Las Cristinas mines. No more discussion of 'this is mine'. This belongs to Venezuela. And we are going to build a national mining company there. We don't need investment of any (kind)," Chavez said during a televised speech in which he lambasted foreign investors. It remains unclear what this means for Crystallex's planned operations in that Venezuelan mine. Company officials at the Toronto headquarters could not be reached for comment. A spokeswoman in Caracas declined comment. Officials at the Ministry of Basic Industries and Mining could not be reached for further explanation late in the day. Chavez said the government will do away with some mining concessions and will no longer extend new ones. Crystallex signed an operating agreement to exploit the Las Cristinas gold mine but is still awaiting an environmental permit, considered a mere formality, before beginning production. The company has said it is interested and willing to develop the mining project. It has long been assumed that Chavez's call for canceling mining concessions didn't include the Crystallex operations in the Andean country. The company noted last week that its operations should not be affected by the government's ongoing review of foreign mining contracts. Crystallex has plans to spend $265 million in Las Cristinas, which includes a processing plant which could take 16 months to construct. The area was previously developed by Placer Dome Inc. (PDG), but the company ceased operating in 2001 as gold prices slumped. Shares of Crystallex traded in Toronto fell 48% after Chavez's comments during afternoon trading. The stock was halted after its price hit C$1.65, down C$1.51, or 48%, on 2.46 million shares traded. Bolivar Gold Corp. (BGC.T), another mining company operating in Venezuela, also saw its common stock price suffer after the president's comments. Shares for the company fell 15.8% in Toronto. Bolivar Gold officials said in a statement that Chavez's comments "should have no impact on the agreements recently reached by Bolivar" with the government. Chavez, a fiery populist who recently declared himself a socialist, is known for making controversial statements related to the government's business dealings. The president has lately stepped up his anti-business rhetoric as his government has also increased land and company asset takeovers. His government argues that the seizures are legal because the companies have left job-creating means of production idle. Foreign investment overall, Chavez said, is expendable if those investors don't like Venezuela's political and economic model. "If they don't like the Venezuelan model, foreign investors can pack up and leave ... We don't need them," Chavez said in his speech. Private-sector leaders have complained that a government anti-business bias makes it hard to do business in the Andean country. They have warned the government that violating private property will hurt the economy in the long run. -By Raul Gallegos, Dow Jones Newswires; 58-414-288-7461; raul.gallegos@dowjones.com