Venezuela To Develop Diamond and Gold Mining

Venezuela’s President Hugo Chavez is seeking for loans to develop the diamond and gold mining sectors. The repayment of the loans will be partially paid with the minerals produced from these mines.However the president did not specify the amount needed.

Because of the policy of nationalization of the mining and oil industry of Venezuela, investors will be expected to go in for joint ventures where the government will hold the major part. Chavez also said that it will not renew private mining concessions after their expiration, so as to enable smooth transition of the sector to nationalized joint ventures and   operational contracts.

According to Idex Online Chavez said” We are on the verge of acquiring credit with several institutions and countries to invest in the exploitation of gold, diamonds and precious metals. And we will pay a part of this credit with that production.”

Russian business executives and officials have visited Venezuela to discuss diamond and gold mining.

Venezuela has also suspended itself voluntarily from the Kimberley process agreement.

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