By Jose Orozco - Feb 6, 2011 9:53 PM PT
Mon Feb 07 05:53:43 GMT 2011
Crystallex International Corp., a Canadian gold producer and explorer, said the Venezuelan government canceled its contract to develop the Las Cristinas deposit, citing a delay of more than a year.
A letter from the state-run Corp. Venezolana de Guayana says the project in southeastern Bolivar state was “unilaterally terminated,” Crystallex said yesterday in a statement distributed by Marketwire. The letter included a copy of a resolution passed by the CVG, the state owned industrial holding company, on Feb. 3, which stated a lack of “progress” and “reasons of opportunity and convenience” as grounds for cancellation, the statement said.
Crystallex is considering every option to protect stakeholders, including filing for international arbitration, the statement said. The company said it had been awaiting a permit to begin construction at the site.
Crystallex, which had a license to mine part of the site, was being considered as a potential government partner, Rodolfo Sanz said on March 31 last year, while he was mining minister of Venezuela. President Hugo Chavez said two years ago his government would mine the site with Rusoro Mining Corp.
To contact the reporter on this story: Jose Orozco in Caracas at jorozco8@bloomberg.net
To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net
