Mining chamber underlines impact of shaky policies

Research by Venezuela's mining chamber Camiven has concluded that political factors have created an atmosphere that is discouraging mining investment in the country, the organization said in a statement. According to Camiven, one of the reasons for the sector's decline is the lack of a concrete and consistent mining policy and the delay in restructuring the energy and mines ministry (MEM) to better serve the industry. In addition, the lack of coordination among official bodies is stopping projects from advancing, as is the non-user friendly process to obtain mining and environmental permits, the chamber said. Another negative factor is the 40% fall in the construction industry that has led to a reduction in the consumption of mining products, added to the way that exchange rate controls are obstructing the import of inputs for the sector. Despite the situation, Camiven said the 15% reduction in the mining industry since 2000 will stabilize this year as miners have managed to maintain certain production levels. The more stable outlook is also due to higher metal prices, including gold, said Camiven.