Post by UKIPA Holdings, LLC on Dec 3, 2014 19:36:14 GMT 4
Mining operators forced to sell gold to the central bank.
Under the amendment to the relevant organic law, the Central Bank of Venezuela (BCV) will regulate the gold market.
The amendment to the Organic Law Reserving the State the Management of Gold Exploration and Exploitation Activities, published in the special Official Gazette number 6,150, requires gold operators to "sell and preferentially deliver" gold to the Central Bank of Venezuela (BCV).
Under the amendment, the BCV "shall participate, regulate, and conduct operations in the gold market, in accordance with the rules issued by the Executive Office."
The reform ratifies that the mining activity is reserved to the State, or through its public institutes or wholly owned companies. It also provides for the incorporation of joint ventures, where the State shall own 55% of shares.
Those alliances, comprising the State and other subsidiaries, "are a mechanism through which societies or other forms of partnership allowed under the Law can share productive processes required to conduct primary and related activities for gold utilization, except for gold trade, which is conducted exclusively by a relevant State body," as set forth in the law