Gold mining blocks wait for approval of Venezuelan Congress

Venezuela's Council of Minister discussed on Wednesday the reform of the Law on Oil Windfall Revenues and the apportionment of gold areas south Venezuela for exploration by the Venezuelan Mining Corporation, a subsidiary of Venezuelan state-owned oil company Pdvsa. The two moves were approved by Venezuelan President Hugo Chávez from Cuba, where he is convalescent.

Both plans will be submitted to the National Assembly for consideration.

Referring to the Law on Oil Windfall Revenues, Ramírez reminded that the reform seeks redistribution of oil tax rates and an increase in Pdvsa's US-dollar contributions to the central bank.

He added that the apportionment of mining areas Guasipati-El Callao, El Callao, and Sifontes Sur for gold development also awaits discussion at the National Assembly.

The minister noted that such blocks account for 81.44 million ounce of gold approximately.

"This action (Incorporating the blocks) will allow delimitation of the areas to boost oil production and prevent smuggling. It will also bring order in a sector that used to be in the hands of private enterprises, which traded in the stock market to obtain vast profit without developing the resources," Ramírez outlined.

Translated by Jhean Cabrera