Venezuela to take majority stake in Guasare Coal

CARACAS, May 11 (Reuters) - Venezuela will take a majority stake in coal miner Guasare Coal, President Hugo Chavez said on Sunday.

Guasare Coal International, a joint venture between Venezuela's state-owned Carbozulia, U.S.-based Peabody (BTU.N: Quote, Profile, Research, Stock Buzz) and Britain's Anglo-American Plc (AAL.L: Quote, Profile, Research, Stock Buzz), operates the Paso Diablo coal mine in Venezuela's western Zulia state.

"I have approved the acquisition of a majority stake in Carbones del Guasare," Chavez said during his weekly Sunday broadcast. He did not say by how much the state would boost its holdings in the company.

Guasare is renegotiating supply contracts with buyers to adjust for inflation and higher coal prices, a source linked to the talks told Reuters in January.

Carbozulia has a 49 percent stake in Guasare, while Anglo-American and Peabody each have 25.5 percent.

Chavez also said the state plans to take complete control of Carbones de la Guajira, buying out the 64 percent stake in the company held by a mining consortium called Carbomar. The buyout will be done over 18 months for no more than $21 million, he said.

"We are going to recover all of the company," he said.

The leftist leader said he wanted to convert the operation into a "socialist business."

Carbones del Zulia has operated the Mina del Norte mine in Zulia state since 1995. (Reporting by Brian Ellsworth; editing by John Wallace)