Canadian miner Crystallex International might form a JV with the Venezuelan government to develop the Las Cristinas gold mine, a sector executive told BNamericas. "This is something that is now possible thanks to the government's new policies on forming joint ventures, but it really depends on which company," the executive said.

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The director of finance at the Basic Industries & Mining ministry (Mibam), Luis Herrera, has said that any JV must be through a 49:51 agreement whereby the state is the majority shareholder.

Herrera has also said that anyone interested in mining in Venezuela should be ready to start working immediately and have ample funds.

Despite the comments about Crystallex considering a JV with the state, it is continuing with plans to mine Las Cristinas by itself and is awaiting environmental permission. Since Crystallex received operating permission for Las Cristinas in 2002 it has completed all of the required documentation but is still waiting to receive the environmental license needed to begin construction.

Meanwhile, Mibam has said it would give the project to Russian company Rusoro Mining but to date the government has not officially informed Crystallex of this decision. "There is no document or regulation that backs this decision," the executive said, adding that Crystallex continues to be Las Cristinas' operator as defined in an agreement signed with the mining concession's owner, state heavy industry holding industry CVG.

In a statement published on November 28, 2008, Crystallex said that it hopes to cordially settle the dispute within six months, otherwise it would take the issue to international courts. Las Cristinas has 464Mt grading 1.13g/t gold in proven and probable reserves, in addition to 629Mt grading 1.03g/t gold in measured and indicated resources.