Minister Sanz remains tight-lipped about Las Cristinas: the government's "position will be determined in due course!"

VHeadline Venezuela News reports: Minister of Basic Industries & Mining (Mibam), Rodolfo Sanz, has refused to discuss details surrounding the paralyzation of the Las Cristinas gold mine in southeastern Venezuela but says that the role of the Environment Ministry (MinAmb) is not to seek to impose limitations on the development of mining projects that will ultimately benefit the nation's economy.

In an interview with the Caracas broadsheet El Universal, Sanz focused on a recent agreement signed between the Venezuelan State and the Russian Agapov Group's Rusoro Mining to exploit gold resources at the Isidora and La Camorra gold mines in El Callao in southern Bolivar state, which were successfully recovered from an ill-fated venture with USA-Idaho-based Hecla Mining.

Announcing that work will begin at the mines this week, Sanz said that he had reached a "tremendous agreement to regained sovereignty over the mines, while allowing the participation of international private capital and solving social problems" in one fell swoop. He added "the communities surrounding the mines have the right to receive the benefits of wealth that the mines produce." The two mines are said to contain gold resources at between 50 and 70 grams per tonne. More than Bs.F 26 billion (US$12.1 million) has been pledged for social improvements in mining communities in the El Callao district.

At the end of June, Hecla Mining had announced the sale of its Venezuelan subsidiaries Rusoro for $25 million after months of speculation about the possibility that the Venezuelan Government would bring the mining operations under state control. The deal with Rusoro brings new hope for the Guayana region.

Asked, however, about the fate of other projects such as Las Cristinas and Las Brisas del Cuyuni, Minister Sanz remained tight-lipped: "I do not want to make any statements on those projects at this time ... our position will be determined in due course!"

As for the Venezuelan Mining Chamber (Camiven) recent recommendation that the two projects and mining operations in general should not remain paralyzed for much longer, Sanz says he has taken aboard a request for frequent dialogue with the mining sector, towards seeking solutions to improve development and growth. Camiven had insisted that the current Mining Act provides the necessary tools for the central government to develop any scale of mining and also allows for projects to go forward under the concept of joint ventures without necessarily being subject to a compulsory majority stake held by the government; although the state would obviously remain in control of matters of national interest even with a minority equity stake.

Sanz, however, signals that the role of the Ministry of Environment "should not be to curb or limit the development of mining projects against the country's economic interests."

VHeadline Venezuela News
vheadline@gmail.com

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