Crystallex International Corp. (TSX:KRY) sent a letter Friday to the Venezuelan government regarding troubled Las Cristinas project and said it may be forced to submit the dispute to international arbitration.
The letter notified the government of a dispute between Crystallex and the Bolivarian Republic of Venezuela under the agreement between the Canadian government and Venezuela for the promotion and protection of investments.
The dispute centres on the denial of a key permit by the Ministry of Environment and Natural Resources and comments made by the minister.
Crystallex said it hoped to settle the dispute amicably within six months, but said if a deal is not reached it has the option of submitting the dispute to international arbitration.
The Toronto-based company has been working for years with the mining ministry in Venezuela on the Las Cristinas property in Bolivar State.
Crystallex shares plunged earlier this month amid reports that the Venezuelan government has chosen a Russian firm to run the project, however the company has said it has not been told of any change of control.
Venezuela has not yet issued Crystallex an environmental permit for the mine, but the company said in September that discussions with the Ministry of Basic Industry and Mining "have been encouraging."
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