April 25 (Bloomberg) -- Venezuelan President Hugo Chavez threatened to nationalize gold mining concessions in the South American country.
Venezuela may end concessions because of “capitalist mafias” comprising national and multinational companies that destroy the environment and exploit workers, Chavez said on state television today.
“If we are going to exploit gold, we would have to nationalize all that, recover and end the concessions,” Chavez said.
Chavez has taken control of foreign oil, utility and metals companies in the country while vowing to transform Venezuela into a socialist state. Central bank President Nelson Merentes has pledged to finance gold production in Bolivar state and to build a gold refinery in order to boost international reserves and develop non-oil export industries.
The bank will increase its gold reserves this year and will buy more than half the estimated 20 metric tons of domestic production, former bank director Jose Khan said March 5. Khan is the new mining minister.
To contact the reporter on this story: Jose Orozco in Caracas at jorozco8@bloomberg.net
Last Updated: April 25, 2010 16:53 EDT
