Venezuela to rescind dozens of mining concessions awarded to corrupt political interests

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Sunday, June 22, 2003 By: Roy S. Carson

Venezuela's National Executive is studying legal options associated with the rescinding of dozens of mining concessions for gold and precious metals awarded to corrupt political interests at home and abroad by previous governments.

Speaking from the Miraflores Presidential Palace in Caracas on his weekly 'Alo Presidente" radio/TV chat show, President Hugo Chavez Frias said "there is a group of people who have mining concessions and who in reality have no connection with Venezuela ... some of the concessions are gargantuan, several hundred thousand hectares in size ... they come on a visit once every so often, or they are represented by front men ... corrupt businessmen and politicians of the 4th Republic who live in luxury abroad."

Accompanied on the nationwide broadcast by Energy & Mines (MEM) Minister Rafael Ramirez and other top government officials, Chavez Frias said his government is dealing with the question as a matter of urgency and is expected to make a policy statement shortly.

The move is seen as the latest in a series of judicial and economic reforms to be introduced by the Chavez Frias government in its efforts to kick-start the nation's mining industry which has remained virtually undeveloped for the greater part of three decades since nationalization in 1976.  Rights to mineable resources remain within the gift of the Venezuelan government, but the update reforms seek to regulate a previous system where concessions to mine for diamonds, gold and other precious metals had been handed out in hugely corrupt deals to powerful political and economic interests at home and abroad.