very good newsCARACAS (Dow Jones)--A state-led review of all mining deals in Venezuela is about three-quarters complete, and the initial results will be announced this month, a government minister said Friday.
"We have reviewed 75% of all the cases," beginning with the oldest ones, Mining Minister Victor Alvarez told reporters. "This creates new possibilities for interested foreign investors."
The government found that some concessions approved years ago - some as old as 23 years - still remain idle, the minister said. Those will be rescinded.
From now on the government will select specific projects to be handled exclusively by the state-led mining company, while others will go to small-scale miners. In a third group of projects, the government will team up with foreign firms in operating agreements.
Private-sector companies will no longer lead mining projects by themselves but always with government involvement, said Alvarez.
The mining review has left many foreign companies awaiting final word before continuing their planned operations, but a few companies have received operating permits in recent weeks.
The minister noted that those companies that received permits, including Canada's Gold Reserve Inc. (GRZ) and Bolivar Gold Corp. (BGC.T), are examples of viable projects that are in tune with the state's new mining policies.
"All those who follow the country's laws have nothing to worry about," he said. Foreign firms that have failed to begin production and have violated laws should be concerned, he noted.