Spokane mining company, Gold Reserve, Inc., is going after the gold. Literally.
The Spokane company — which admittedly has one classic business name, and also one of the dullest — announced on Tuesday it’s going after the Bolivarian Republic of Venezuela over an unresolved mining dispute connected to its Brisas copper/gold mine in South America.
The Bolivarian Republic is one of the states of Venezuela. The Spokane company says it’s spent huge amounts to develop the project and now is denied permits to operate.
The estimated damages Gold Reserve is after: $1.9 billion, according to a press release.
The announcement said GRZ (its symbol on the AMEX exchange) has filed an arbitration claim with the World Bank, seeking resolution and compensation for alleged violations of its mining rights and claims in “the world-class Brisas gold/copper project and the promising Choco 5 gold property.”
To see a news summary of the key part of the dispute, this link can provide an overview.
Gold Reserve believes the Venezuelan government has violated various trade agreements.
On the other side of the argument, Venezuelan President Hugo Chavez has instructed the Ministry of Basic Industry and
Mines to create a national mining company, which will allow the state to
regulate the industry together with small and medium mining companies
that are legally established. In previous statements, Chavez has blasted mining companies for exploiting his country’s mineral reserves and paying very little in taxes.
Gold Reserve has offices in downtown Spokane. For more information, read the continuation of this post, below.