Rusoro sees Venzuela gold competition

CARACAS (Reuters) - The chief executive of Russian-funded miner Rusoro said on Thursday that other Russian companies were interested in operating the giant Las Cristinas gold property in partnership with the Venezuelan government.

Chief Executive Andre Agapov addressed the Reuters Latin American Investment Summit by telephone from Italy.

Venezuelan President Hugo Chavez said in January that the vast gold property would be operated by the Venrus joint venture between Rusoro (RML.V) and the government.

Canadian company Crystallex (KRY.TO) currently holds the operating license for the deposit, but has never received the environmental permits needed to develop the project.

"There are other interested parties, privately owned or government-owned, which would like to become partners in a joint venture," Agapov said.

Rusoro, which has several mines and properties in Venezuela, will keep growing in the South American country regardless of the government's decision on Las Cristinas, Agapov said.

He said Rusoro will post its first net profit in the first quarter, based on gold production at its Venezuelan mines. Last year the company lost $72 million and produced 100,000 ounces.

Rusoro, which is expanding its operations in the El Callao mining district, expects to produce between 170,000 and 190,000 ounces of gold this year.

Agapov said new production would bring the company's output to 275,000 ounces in 2010 and could almost double that in four years.

"The production profile in the Callao area alone can be in the magnitude of Las Cristinas .. it could reach 500,000 ounces a year in less than four years," he said, citing a study by mining consultants Micon that Rusoro will publish in the next few weeks.

(Editing by Christian Wiessner)