Pressure on gold mine developers grows as Venezuela says No

Funeral bells may have sounded for two of Latin America's top gold projects after mineral-rich Venezuela warned it will not issue permits in a forest reserve, part of a slow campaign grinding away at private miners. Left-wing President Hugo Chavez is on a nationalizing spree that has swallowed energy, steel and cement companies. For months he has toyed with the idea of taking a chunk of miners without ever fully revealing his intentions for the sector. But in April the environment ministry ruled that no new gold mines would be allowed in a reserve that houses the country's main projects, owned by Canada's Crystallex and Gold Reserve, the strongest steps yet taken against miners. Citing environmental concerns in the ecologically rich but degraded Imataca Forest Reserve, Minister Yuviri Ortega later said open-pit mining would be banned and all concessions were under review, prompting speculation the government is preparing to take over companies.