'No further gold mining' in Venezuela - Friday 16th May 2008

The Venezuelan president Hugo Chavez has announced that there will be no new gold projects or exploration for gold in the country.

Environment minister Yuviri Ortega told Reuters that the vast Imataca Forest Reserve will be closed for gold mining in what is likely to be a blow for Canadian mining companies Crystallex and Gold Reserve, which hoped to exploit mines there.

"Neither private or public companies will for now explore Imataca's gold," he told the news provider.

Imataca sits on what is thought to be one of South America's largest gold deposit, but officials have said that there will now be tighter controls on natural resources to conserve the environment.

This could be good news for people considering gold investment as it further illustrates that the global supply is dwindling.

Earlier this month, Barrick Gold Corporation's acting chief executive Peter Munk said that the worldwide gold supply is "tragic".

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Goldbug, 16 May '08

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