Sunday, June 8, 2008

After Mibam Minister's weekend visit, USA Hecla Mining is to continue gold mine operations at El Callao

Although Basic Industries & Mining (Mibam) Minister Rodolfo Sanz had previously announced the termination a concession to mine gold at the El Callao Gold Mining Company (a subsidiary of USA-based Hecla), the minister now says that the company is to remain ... provided they from now on adhere to the law and provisions to be imposed.

Faced with a serious revolt by local employees, Sanz has visited the area determined to resolve outstanding problems. He says that he can not take away a contract with Hecla but that it may no longer implement labor requirements like demanding that workers should strip naked to make sure they are not smuggling gold off the premises. Labor organizers have always denied the allegations but Sanz says new rules have been established for the transnational to continue operating in Venezuela.

Mibam agrees that while the mining company abide by the guidelines he will put aside negotiations to pass the CVG-Minerven owned mine to the Russian Agapov Group's Russoro Mining.

Recent statements from a source at the Ministry of Mines had seen the El Callao Gold Mining Company being given way to the Russians but Sanz said that an exhaustive review of Health & Safety standards at the Isidora mine had found serious irregularities and a high risk environment. Meanwhile the situation for employment in southern Bolivar State is critical and that central government is forced to find ways to begin to bring the situation under control for the benefit of people who have lived in misery despite the untold riches under the soil.

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Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

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