Saturday, December 27, 2008

CARACAS (AP) - President Hugo Chávez said on Saturday that Venezuela is revoking some concessions to mine for gold, controlled by wealthy businessmen.

Chavez did not mention the specific companies that would be affected, but added that Venezuela is diversifying the economy to not depend so much on oil, in the midst of this crisis of global capitalism ", one of whose purposes is" the fall in oil prices, which is already below 30 dollars per barrel. "

"Next year we will double the production of gold," added the president. "We recovered some concessions that had given the previous governments, and are still in force around richies, who take the gold and was carried by exploiting the miners."

Last month, the Mines Minister, Rodolfo Sanz, Venezuela announced plans to revoke the award of the largest gold mine in the country, operated by Crystallex International Corp.., Based in Canada. Sanz said that the mine Las Cristinas would operate under control of the state starting next year.

"Following the financial crisis that has spread globally, it is necessary to try to recover our gold to increase our international reserves," said Sanz to state radio.

In recent months, the Chavez government has had various confrontations with international companies for the extraction of gold, but the situation has worsened with the collapse of oil prices, something that has reduced government revenues.

Light crude oil prices and low sulfur content have collapsed to less than a quarter of those seen in July, from 147 dollars per barrel. Oil accounts for 94% of Venezuelan exports and almost half the government budget.

"That is going to hit us without a doubt, in the coming years," acknowledged Chavez, who affirmed however that his country will take advantage of this impact and turn it into something "positive".

The president has indicated that the effects of the crisis will be well before the resentful "oligarchy" capitalist, and not for the poor, those who benefit from social spending.

"It is not going to stop social investments - in health, education and missions. That is something sacred for us," he said.

"We are talking about the economy ... preparing for the crisis that continues plunging the world ... to move forward in our productive economy."

Crystallex did not respond to the calls that were made on Saturday, looking for a reaction. But the company reported earlier this month, said in a statement, which has not received an official communication regarding the changes in the control of Las Cristinas.

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