Santacruz Silver Mining reports fatality at Tres Amigos mine in Bolivia
Tres Amigos mine, a part of the Caballo Blanco Group of mines, has resumed operations after it was shut down following the incident.
Venezuelan President Hugo Chavez followed through on a promise he made last month to ban the export of bullion under a broad scheme to nationalize the country’s gold industry, The Wall Street Journal reports (sub required):
Under guidelines published in the Official Gazette on Monday, the government said “all gold that is obtained through mining activity within national territory will be handed over to the Bolivarian Republic of Venezuela.” The decree also gives companies 90 days to form joint ventures for gold mining, in which the government will hold a 55% stake.
According to the decree, the state will collect a 13% royalty on gold mining but smaller operations would only be subject to a 3% tax; military zones will also be established to crack down on illegal mining operations, WSJ reported.
Gold companies that want to do business in Venezuela — such as Toronto-listed Rusoro, the only large gold miner operating in the country — will be allowed to do so but will have to become minority partners with the government.
The new law also eliminates the option for companies to avail themselves of international arbitration; should disputes occur, they will be solved in Venezuelan courts.
This provision appears to be aimed at the likes of Canadian company Crystallex, which is suing the Venezuelan government for $3.8 billion through the World Bank’s International Centre for Settlement of Investment Disputes. Toronto-based Crystallex claims the government of Venezuela unlawfully terminated the Mine Operation Contract and failed to propose any resolution to the dispute over the Las Cristinas gold mine.
MINING.com reported in August on how Venezuela faced a logistical and security nightmare in repatriating some 211 tonnes of gold reserves worth $12.3 billion, held overseas, as part of the government’s gold nationalization plan.
Image from Chavez141610.jpg
5 Comments
Riaan2405
south africa will follow his lead very soon
Mrkhrdr
Boycott Venezualan gold. That way they can hoard all they want, but it won’t mean a thing – except to miners in the country. I don’t understand what they think they will get out of this move…
Mrkhrdr
By “they” in that last sentence I mean the Chavez gov’t.
Jimmy59ca2001
Canada will be looking at this option also, guaranteed
Swifty
Their perception is distribution of wealth. Our friend in SA “Jules” so emphatically states that companies do not share their profits. Let’s take a look at Zimbabwe. Politicians and corrupt individuals applied nationalization of mining companies, marching in and stating that I am taking what you paid for and declaring it mine because “I am”. Let’s reflect, “I am’s currently own multi million dollar mansions in Cape Town and other parts of the world, living luxury lives in Zimbabwe while those they claim to represent are living well below the breadline. Unemployment statistics have multiplied 10 fold, the health system is no where near to that of “1998”. To put this all into perspective, sometime back (15yrs or so the Zimbabwe dollar was 1:1 to the US dollar and known as the Southern African bread basket. Since redistribution of land the countries agricultural industry output declined by 60%, fallen deeper into dept, with no recovery in sight and now they are forcibly taking proceeds from pvt companies. Sustainable development is certainly not part of these individuals vocabulary. They do however master corruption, greed and self preservation with distinction.