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Venezuela's Chavez Says Mining Concessions to Be Revoked NewsMax.com Wires CARACAS, Venezuela -- Venezuela's President Hugo Chavez announced plans to revoke mining concessions granted to private companies as the country's state mining firm reviews many of its contracts. Speaking to a crowd at the presidential palace late Sunday, Chavez said, "we've decided to revoke a group of mining concessions given by previous governments, including our own government. No more concessions." "We've decided to create a new Venezuelan mining company that operates through cooperatives," he said, according to a transcript of his remarks. The state-owned mining conglomerate Corporacion Venezolana de Guayana, CVG, has been reviewing mining contracts and concessions. Nearly all companies with concessions will be affected, said Adel El Zabayar, a member of the National Assembly's mining commission. "Almost all of the concessions will be reviewed," he told The Associated Press on Monday. He said no figure was available for the total number of existing concessions due to inadequate regulation in the past that allowed different governmental authorities to issue such rights. Story Continues Below
El Zabayar said the mining review was prompted in part by concerns about an industry harming the environment and rife with smuggling. More than 90 percent of the gold and diamonds mined in Venezuela are believed to be smuggled out as contraband, El Zabayar said. Officials also say mining often has poisoned rivers with mercury that is used to separate gold from ore, and has released silt into rivers that can harm key hydroelectric plants. The government recently has stepped up an agrarian reform program turning over idle farmlands to cooperatives of poor farmers. Government officials also have signed joint-venture agreements with private oil firms as it seeks a majority stakes in oil fields where the firms used to pump oil independently under contract. © 2005 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. Editor's note: Read more on this subject in related Hot Topics: |
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