Venezuela Gov't Seeking State Control of Mines
Venezuelan President Hugo Chavez's administration has sent a bill to Congress that would "rescue inactive mining areas" by creating joint ventures in which the government would have a majority stake.
The leftist-populist government's plan is to do away with the domination of mines by large companies and "recover sovereignty over almost one million hectares (2.5 million acres,)" Heavy Industries and Mining Minister Victor Alvarez said June 16 at a news conference after submitting the bill to lawmakers.
According to the minister, "most" of the mining fields "acquired more than 10 years ago via concessions or mining contracts remain inactive," thereby leaving thousands of miners in the southern state of Bolivar unemployed.
Bolivar, which is home to large deposits of quartz, gold, bauxite and diamonds, is also the heart of Venezuela's iron and aluminum industry. The bill that was sent to the entirely Chavez-controlled legislature offers the possibility of recovering mining areas and "reassigning them in different ways," said Alvarez.
One portion of these areas would be placed under government control for "strategic reasons," others would be granted to small miners organized in cooperatives and still others "will be given to joint ventures that are majority-owned by the government," Alvarez told the government-run ABN news agency.
"Those mining areas controlled by companies applying for permits will also be recovered," because the permit process has been used "as an excuse and pretext for justifying inactivity," he said. Alvarez added that Venezuelan and foreign companies that have "complied with the law and with their contracts will be respected by the government."
Chavez, a self-described "revolutionary" and close ally of Cuban leader Fidel Castro, said in September 2005 that his administration would not grant new mining concessions and that production would be put in the hands of a government-run company.
Earlier this year, foreign oil firms in Venezuela, the world's fifth-largest crude exporter, were forced to accept arrangements whereby they were made minority partners in joint ventures with state-owned oil company PDVSA.
The leftist-populist government's plan is to do away with the domination of mines by large companies and "recover sovereignty over almost one million hectares (2.5 million acres,)" Heavy Industries and Mining Minister Victor Alvarez said June 16 at a news conference after submitting the bill to lawmakers.
According to the minister, "most" of the mining fields "acquired more than 10 years ago via concessions or mining contracts remain inactive," thereby leaving thousands of miners in the southern state of Bolivar unemployed.
Bolivar, which is home to large deposits of quartz, gold, bauxite and diamonds, is also the heart of Venezuela's iron and aluminum industry. The bill that was sent to the entirely Chavez-controlled legislature offers the possibility of recovering mining areas and "reassigning them in different ways," said Alvarez.
One portion of these areas would be placed under government control for "strategic reasons," others would be granted to small miners organized in cooperatives and still others "will be given to joint ventures that are majority-owned by the government," Alvarez told the government-run ABN news agency.
"Those mining areas controlled by companies applying for permits will also be recovered," because the permit process has been used "as an excuse and pretext for justifying inactivity," he said. Alvarez added that Venezuelan and foreign companies that have "complied with the law and with their contracts will be respected by the government."
Chavez, a self-described "revolutionary" and close ally of Cuban leader Fidel Castro, said in September 2005 that his administration would not grant new mining concessions and that production would be put in the hands of a government-run company.
Earlier this year, foreign oil firms in Venezuela, the world's fifth-largest crude exporter, were forced to accept arrangements whereby they were made minority partners in joint ventures with state-owned oil company PDVSA.
posted by Alice at
Sunday, June 18, 2006
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home