De Beers Shuts Down Venezuela Operation
October 23, 03
De Beers has suspended all diamond exploration activities in Venezuela following a government unilateral decision to cancel a technical co-operation agreement.
Yesterday the South American state Energy and Mines Ministry said De Beers acted in an unspecified “illegal manner”. According to Orlando Ortegano, the Deputy Minister, the miner has not complied with the agreement and failed to meet certain legal requirements in its requests for several mining concessions in the country, again without supplying exact details.
Venezuela has been trying for several months now to expand its control over gold and diamond mines. Late last month President Hugo Chavez signed a decree that gave the ministry control over all existing mining concessions.