Wednesday, May 14, 2008

Las Cristinas: Allowing further permit delays is the REAL crime!

VHeadline commentarist and gold market buff Todd MacSween writes: With news of a proposal at local level that a referendum of the people directly concerned should now be held decide the fate of Las Cristinas, North American and local investors must be heartened by the support.

When Crystallex was established as the contractor to mine Las Cristinas a Memorandum of Understanding (MOA) was drafted as an established guide outlining rules for the future of all mining in Venezuela.

It has certainly been a factor worth designing since social obligation factors were included and it was seen as a key to the door of permitting mining operations to begin with.

After hundreds of US$ millions spent on upfront social obligations and infrastructure as required, and with a new township practically established, it is know by all and sundry the true extent of what exactly has been achieved through the past few years.

It is now those contributions that will decide the fate of the Venezuelan Guayana Corporation (CVG) relationship with Crystallex International Corporation … and indeed just about every foreign investor on the planet who may ever think of Venezuela as a place in which to invest crucial funds.

  • Approval by the National Assembly (AN) and a recommendation for the permit to be granted so the project can start immediately, has clearly demonstrated the need for such a project such as Las Cristinas.

Support has been noted over the past year from the Mayor of Sifontes municipality, the State Governor , central government ministers … and the small-scale miners … all of whom see great potential in resolving at least part of the major issues affecting the area in social welfare, employment, public health and impact on the environment in a particularly ravaged part of the country.

News that the Environment Ministry believed that mercurial damage and subsequent destruction of the rainforest could not be reversed came like a thunderbolt out of the blue.

How indeed, can a government official wield such unchecked power and influence as to overrule the democratic process in a truly democratic society such as President Hugo Chavez Frias’ Venezuela?

The situation is turned on its head immediately because with the help of new technology and the already offered assistance of larger mining companies set to work in the area, not only would there be less damage from illegal mining but the damage created already from lack of large scale mining could be reversed.

  • Systems used by larger scale mining operations would remove the gold while at the same time removing any mercury contamination that may present.

Job opportunities alone would also allow for the small miners to become an integral part of a community in support of environmental protection and the social benefits that would ensue in a new education system created for purpose.

Illegal activity should therefore be the main concern since those who already pollute and ruin the environment do so solely for the sake of grubbing a few dollars which fuel Venezuela’s black economy, corruption and other illegalities.

Hopefully, with greater regulation, illegal miners will be stopped completely and regulation will allow for those who strive for a better social life to contribute the proper way. Government-funded social projects would also be significant and allow for the recovery of copper from the tailings.

When Las Cristinas construction and production does eventually begin it is clear that the MOA specifics will create an ideal working environment , where employers are glad to be contributing to environmental protection as well as obeying all aspects of its contract to guarantee workers will be treated properly and with respect.

REAL environmental damage would be created from the lack of permits and the longer these permits take, the more damage and contamination will occur from those who merely seeking to eke a living the best way they know how.

Allowing further permit delays is the REAL crime!

The best news to come out of it is that the Venezuelan people will be the eventual winners … with President Hugo Chavez basing his governance on 21st century socialism it is now the time for the entire world to see the man in action and to see the benefits.

The Las Cristinas saga must finally come to closure based on socialist views and the desired commitment to the community in which the aspirations of the people are truly respected.

If this be the case, Socialism in the 21st century will certainly demonstrate the benefits accrued from private companies working together with government agencies for the benefit of all.

Todd MacSween
emilytodd@netzero.net



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