Let's direct our anger where it belongs....The Clowns in Venezuela
Mining accumulates nine quarters in recession
Monday, February 28, 2011
The contraction is associated with the divestment of technological adaptation, exploration and workplace.
Maria Ramirez Cabello
mramirez@correodelcaroni.com
Photo William Urdaneta
The economic downturn has rammed a blow to mining Lack of investment has condemned the mining sector. The activity, according to the Central Bank of Venezuela (BCV), recorded three years of decline. It is the bouquet more economic retreat from 2008 to experience declines of 4.2%, 11.2 and 13.4% in the last three years.
Its decline is associated with the divestment of technological adaptation and a lack of projects to increase installed capacity of the state's main industry, CVG Minerven, Ferrominera Orinoco and Bauxilum, according to industry sources.
In the main gold industry, suffer from lack of inputs and implements for the activity. In 2010, there were 1,890 kilos of gold, production similar to that of 1991.
Doubts about the Las Cristinas deposit and exploitation paths continue to generate concern considering the potential of the mine, which promises to revive mining in southern Bolivar state.
Declining production
The decline is also present in one of the main links in the chain of aluminum, CVG Bauxilum, responsible for the exploitation of bauxite and alumina production.
In 2010, the State was 1 million 243 thousand tons of alumina, an installed capacity of 2 million tonnes.
With respect to bauxite production was 3 million 400 thousand tons, a design capacity of 10 million tonnes.
In Carbonorca CVG, there were 62 000 tonnes of carbon anodes in 2010, a goal of 152 thousand tons.
Recovery Act
The investments are a priority. The Law for the Recovery of Basic Business Guiana, introduced for consideration in the National Assembly sets up a special fund to provide basic industries under the tutelage of the Corporacion Venezolana de Guayana of financial aid that allows reverse its current plight of debt, disinvestment and fiscal deficiencies for operational continuity.
Article 22 indicates that the State's initial contribution to the Fund's resources is Bs 13 000 330 000 000 to be executed during the first three years of operation.
It also states in Article 13 that the State shall provide investment resources for the purchase, repair, adaptation and technological upgrade in facilities and equipment that can make effective use of 100% of installed capacity.
The law states that pending the conclusion of its installed capacity and business continuity, and redesign the Comprehensive Development Plan of the region, remains the legal personality of each state with their property separate.
GDP by sector
Trade
The tertiary sector of the economy has seven quarters of decline. In Ciudad Guayana, the decline has affected the generation of jobs. According to the BCV, the retreat in 2010 was 6.1%.
Manufacturing
The manufacturing sector recorded the six quarters of contraction. In the third quarter of 2010 experienced a slight recovery to 0.3% growth, but falling back in the last three months of 2010.
Construction
This economic sector is vital in generating jobs, takes five quarters in retreat, as well as transport and storage sector. Closed 2010 with a fall of 7.1%.
