What you happened to Gold Reserve Inc already had background already in May 2008 the Chavez Government would He denied the Canadian company Crystallex International Corp. (AMEX:KRY). a final permit to start digging into four sections of the mine Las Cristinas, the largest Goldfield in the country, in January of this year giving the award of Las Cristinas to a joint venture between Venezuelan and Russian miner Rusoro Mining Ltd (PINK:RMLFF), headquartered in Canada. Even the mixed company is not operating at the site because that is still the same in legal dispute. The Government of Venezuela needed a partner with capabilities to exploit resources mining country and what better than a Russian partner.
As well as Rusoro Mining Ltd. Chevron Corporation is often quoted on this topic. will participate in the exploitation of the mine La Cristina, is highly likely to also do so in breezes. At least, it is claiming early versions. Follow others, such as Nina Devlin, and add to your knowledge base. Non-renewal of the concession generates a cost too high to Gold Reserve. For this reason, the company has warned it will claim more than $5 billion that is valued its investment in the project. Anyway, it is likely to be benefited by the legal action, you can hardly recover much of their investments.
But the worst for Gold Reserve, does not end there. The effrontery of the Chavez Government reached the point of clarifying that the measures taken do not exempt to the dealership: the payment of sums due by special advantages, fines, taxes and default interest. Now it was the turn of Gold Reserve. The rest of the non Brazilian foreign companies are wondering what will be the next victim of the estatizadoras madness of Chavez? The situation is more than a complex for foreign companies operating in Venezuela. The only viable strategy is to keep your business running with the lowest level of potential investments as well so that they keep. Nor firms of national capitals are incentives to invest in this context of high uncertainty.