September 08, 2008

Venezuela government could suspend mining concessions

According to Mr Gilberto Sánchez president of Venezuela's mining chamber Camiven, the Venezuelan government may be planning to issue a decree suspending all mining concessions in the country.

Mr Sánchez told BNamericas that "Just as Ecuador did recently. That possibility exists.” Mr Sánchez mentioned the possibility since time is almost up for the Venezuelan government to approve a mining reform through President Hugo Chávez's enabling law and as yet there have been no announcements on the issue.

The enabling law allows Mr Chávez to rule by decree on a broad range of issues for 18 months as of February 2007, bypassing the legislative branch.

Mr Sánchez said that "However after the enabling law expires, the president can still draw up a bill and present it to the national assembly for discussion, but that would complicate the process much more.”

He added that a draft mining reform law drawn up last year by the ministry of basic industries and mining proposed that a private company can only participate in mining by forming a JV with the state, where the state holds the majority.