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UPDATE 3-Venezuela stops open-pits and gold mines

Thu May 15, 2008 5:07pm EDT
 
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By Ana Isabel Martinez

CARACAS, May 15 (Reuters) - Mineral-laden Venezuela on Thursday shut the door to new gold projects and threatened other mining and logging concessions in a step by leftist President Hugo Chavez to tighten control of natural resources.

Environment Minister Yuviri Ortega said the South American country will not give permits for any open-pit mines and will not allow companies to look for gold in its vast Imataca Forest Reserve.

"Venezuela will deny environmental permits for the open-pit mine exploitation," Ortega told Reuters in an interview. "Neither private or public companies will for now explore Imataca's gold."

Citing ecological damage, Ortega said the government was also revising all its mining and timber concessions.

OPEC member Venezuela is one of the world's top oil exporters. With its coffers bulging from record crude prices, it feels it does not need to risk further harming its environment with more mining and logging.

"For the moment we do not need to exploit these minerals; as the president says, we don't need diamonds or gold, or coal," she said, but did not give further details.

Much of the Caribbean state remains largely unpopulated and it houses diverse eco-systems including a significant chunk of the Amazon rain forest.  Continued...

 

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