Minca refutes CVG ex-president's statements

Mining company Minera Las Cristinas (Minca) has refuted declarations from the former president of state heavy industry holding CVG, Francisco Rangel, who reportedly said that Minca withdrew its lawsuit in the supreme court TSJ because the court sided with CVG in its decision to rescind Minca's contract for Las Cristinas mine development. Minca's decision to drop its lawsuit in the TSJ "does not mean Minca is desisting, but that it has taken its claim to higher authorities on the international level," Minca legal representative Mariana Almeida told BNamericas. CVG took control of Las Cristinas gold mine in 2002, insisting that it would hand the mine over to another company which would actually invest in the mine's activation in spite of Minca's claim to development rights of the deposits. The decision to withdraw the suit in the TSJ is due to a requirement to be able to proceed with international arbitration, Almeida said, to settle the differences between CVG and Canadian company Vannessa Ventures (TSX-V: VVV), which is a shareholder of Minca. CVG's Rangel also stated to local press that the Minca decision shows the legality of the actions taken by CVG. "Rangel's actions are what brought about the nearly US$1bn claim. If Rangel had done everything well then the state would not have been sued for that amount," Almeida said. The reason behind the former executive's statements is political, forming part of his campaign for Bolívar state governor, the lawyer said.