Hecla Mining's El Callao Gold Mining Company taken over by units of the Venezuelan military

Hecla Mining's El Callao Gold Mining Company has been taken over by units of the Venezuelan military following reports that the Idaho-USA-based company has been reluctant to negotiate with officials from the Basic Industries & Mining (Mibam) Ministry which is now re-considering a proposal to hand the gold mine over to the Russian Agapov Group's Russoro Mining Corporation.

Local newspaper Correo del Coroni is reporting that Hecla employees had called on authorities to maintain order and to resolve uncertainties surrounding El Callao Gold Mining Company. As a result the mine was militarized, Wednesday, on allegations of "intransigence" by the US transnational. The conflict was sparked following a meeting, Tuesday afternoon, between idled workers and Mibam officials. Mibam Minister Rodolfo Sanz ordered the military action after "the transnational again refused to comply with Mibam's rules put on the table and then attempted to impose its own conditions."

According to local reports, Hecla had decided it had had enough and wanted to returned to the facilities and work as it had done until just a few months previously ... but last Friday, Mibam had preconditioned an open dialogue to establish new forms under which mining operation should continue.

The situation remains tense. Redundant Hecla employees want the situation resolved as soon as possible claiming that since th emiddle of April they have been dice in a game between various state agencies who have made promises hither and thither contributing only to general uncertainty over what ios really to happen to the workforce ... they say the same is happening to mining in general and they are tired of the constraints imposed by the central government.

Among the issues uppermost in everyone's mind is Hecla attitude towards accepting certain conditions ... such as reinstating three dismissed workers and recognition of benefits that they have stopped paying employees for several months.

Meanwhile the waiting game continues pending negotiations with the Agapov group's Russoro Mining which is willing to take on current Hecla employees and even to pay such labor liabilities as exist if they are given permission to operate the CVG-Minerven owned plant. At this moment there has been no official pronouncement by any party and the locals are left waiting for a resolution to their problems with more uncertainty looming.

"The sooner there is a settlement with any company to to stay in El Callao the better, before even more families are placed in a critical condition."