Venezuela's Bolivar State a Powder Keg? 
By Jon A. Nones
16 Nov 2005 at 05:17 PM EST
St. LOUIS (ResourceInvestor.com) – As the market awaits Venezuelan President Hugo Chavez’s announcement scheduled for November 23, much of the media has quieted down on this front - overshadowed by news from the big guns: Barrick, Placer and Newmont. As such, it seems a little tidbit was overlooked last week concerning concessions in Bolivar State. Crystallex’s Lo Increible 4A and 4B concessions in Bolivar State have been revoked. 
Last week, Venezuela’s Basic Industries and Mining Ministry (MIBAM) issued a Resolution setting aside more concessions for use by small miners. Several of these concessions had previously been granted to commercial mining companies – Crystallex is one of them.
Yesterday, the National Assembly met to review last week’s report. As reported earlier, according to a BNamericas interview, Vice Minister Ovalles said President Chavez will make an announcement regarding the mining sector on November 23.
“We believe that the Venezuelan government recognizes and values its contractual commitments and working relationships with international companies, like Crystallex, that have demonstrated both compliance and good corporate citizenship in their dealings with government,” Bruce said in the release.
On top of this, Ministry of the Atmosphere and the Natural Resources (MARN) issued another Resolution yesterday protecting various species of tropical fern for three years - in the mining areas of Bolivar State. This could potentially impact environmental permits.
“We have had extensive meetings with senior government representatives and, as a result of those meetings, remain confident that the permit which will allow Crystallex to commence construction at Las Cristinas will be successfully secured,” Bruce added.
According to the Resolution, it is “prohibited in all the national territory by a lapse of three years, the extraction, transportation, commercialization, advantage and any other type of intervention of briofitos (dark brow, hepaticas and antoceros), of the arborescentes ferns (Families: Cyatheaceae, Dicksoniaceae, Lophosoriaceae, Metaxyaceae) and of the wood beard (Tillanddsia usniodes), in lands of the public or deprived dominion of the Nation and in lands of private property.”
Although most of the areas that are currently being mined are well clear of foliage, there is bound to be at least some plant life in the Las Cristinas area. After all, it is rainforest.
Furthermore, all of this is against the backdrop of comments by Venezuelan mining leader, Rafael Mogollón, saying the Bolivar State mining region is “a powder keg ready to explode.”
In an announcement to Minister Victor Alvarez, Mogollón said a violent conflict could explode in different mining sectors in Bolivar State due to worker unrest. Mogollón’s alludes to promises made to small miners still unfulfilled by the government.
“Our relatives are paying the consequences of the bureaucracy,” he said.
Still, Crystallex remains confident of its situation in Bolivar State.
“The company’s confidence in the Government of Venezuela is unchanged.... Consequently, the company has continued to advance the development of the Las Cristinas project,” Bruce concluded.
Crystallex shares [AMEX:KRY; TSX:KRY] closed at $1.50 on AMEX, the same as yesterday’s close.