August 22, 2008

Venezuela to take majority stake in Guasare Coal

Reuters reported that Venezuela will take a majority stake in coal miner Guasare Coal.

Mr Hugo Chavez president of Venezuela during his weekly Sunday broadcast said that "I have approved the acquisition of a majority stake in Carbones del Guasare.”

He did not say by how much the state would boost its holdings in the company.

Mr Chavez also said the state plans to take complete control of Carbones de la Guajira, buying out the 64% stake in the company held by a mining consortium called Carbomar and that the buyout will be done over 18 months for no more than USD 21 million. He said that "We are going to recover all of the company.”

Guasare Coal International, a JV between Venezuela's state owned Carbozulia, US based Peabody and Anglo American Plc, operates the Paso Diablo coal mine in Venezuela's western Zulia state. Carbozulia has a 49% stake in Guasare, while Anglo American and Peabody each have 25.5%. Carbones del Zulia has operated the Mina del Norte mine in Zulia state since 1995.