Canadian mining company Crystallex International Corp said Sunday it has been notified by Venezuela that its contract to develop a major gold mine has been terminated. Toronto-based Crystallex said on its website that it received a letter from the state company Corporacion Venezolana de Guayana, or CVG, saying its operating contract for the Las Cristinas mine has been "unilaterally terminated."
The statement said that enclosed with the letter was a copy of a CVG resolution formalising the decision, citing a purported lack of activity by Crystallex on the project for more than a year and also "reasons of opportunity and convenience." Crystallex said it had upheld its obligations under the contract and prepared the site to a "shovel ready" state while awaiting a permit from the environment ministry. The environment ministry denied the request for a permit in April 2008 despite "Crystallex's fulfilment of the conditions to receive the permit," the company said.
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