Have you seen those commercials on TV about those guys asking people to sell their gold by mail? I first saw the commercial on Spanish Networks but lately I seen it on regular TV stations. It sounds like a risky business, they send you an envelop where you put all your gold and send it to the company, which will send you later a check for the gold. It sounds like an idea that Chavez would have, doesn’t it? Well, the government of Hugo Chavez wants to have control of all major industries in Venezuela. The newest acquisition by force from the government is the mine of Las Brisas. Yes, this is a gold mine located at Kilometer 88 mining district.
Now, the government has announced that they have plans to mine the gold reserve and the adjacent mines of Las Cristinas. It is not a major secret that the price of gold has increase a lot in the last couple of years and there is evidence that it will continue to rise in the future. Here is another example of how Chavez likes to do business. He let others do the hard work so he can come later and takes over once all the work is done.
“The government’s actions are a continuation of its wrongful treatment of Gold Reserve and its investments and a further demonstration of the government’s earlier decision to expropriate the entire Brisas project,” [taken from reuter.com]
In the beginning the conception was giving to Gold Reserves, a Canadian company to work on the project. But in the last year the government has made it impossible for the company to do any type of exploration. Now, Chavez has announce that Rusoro a Russian company and the government will mine the sites. I guess all those trips to Russia were not in veined.
News Clip: Reuter.com