Meanwhile, Aluminos del Caroni (Alcasa), owned 92% by the Government and 8% by Reynolds International, operating a primary aluminum smelter and two rolling mills, posed perhaps a bigger financial problem. Based in Puerto Ordaz,

Alcasa had only two of its four reduction lines operating and a fifth still under construction. Alcasa was not to be included in the Bauxiven-Interalumina-Venalum package, but instead was offered separately for privatization.

With good supplies of bauxite, plentiful labor, and low energy costs, Venezuela boded well to cure its financial problems and become a serious competitor in world aluminum markets.

Chromium.—the Ministry of Energy and Mines reported chromite mineralization in two places. About 10,000 Million metic tons (Mmt) grading 40% Cr2 O 3was located in Falcon State, east of Lake Maracaibo. Another 38 Mmt grading 2.73% Cr2 O 3was projected in Aragua State, west and south of Caracas.

Cr2o3 %	Mine name	Reserve
40 %	Falcon	10000 Mmt
2.73 %	Aragua	38 Mmt

Gold.—Gold reserves are found as Placer deposits and Vein form. Output of gold in Venezuela Because of political problem reduced among 1998-2000.

Data represented only reported production and did not include output by garimpeiros, known to be widespread in their small operations in the less accessible parts of eastern and southeastern Venezuela along the border with Brazil. The Government estimated that there may be 16,000 of these illegal miners and that they smuggle an estimated 25 metric tons (mt) of gold out of Venezuela yearly.

Monarch Resources, of Bermuda registry, opened the first new underground gold mine, La Camorra, in Venezuela in 50 years. Situated in Bolivar State in the El Dorado region (but not at Kilometre 88), the mine began pouring gold in midyear.

During 1994 centered on the so-called Kilometre 88 district of southeastern Bolivar State in the Precambrian shield, where the geology is very similar to that of the greenstone belts of the Canadian Shield. So named because of its location along Highway 10 south of the zero marker near El Dorado on the Cuyuni River, the area was worked illegally for years by unlicensed miners, including garimpeiros from Brazil, who were thought to have removed more than 62 mt of gold from surface operations using primitive mining techniques. In 1990-92, the Government largely closed down illegal mining, relocated the garimpeiros and, in conjunction with the liberalization of its mining laws, made the region accessible to large-scale exploration fueled by foreign investment. Issues relating to title needed clarification, but reportedly could be resolved by expert Venezuelan legal advice.

Many Canadian junior and senior companies were greatly involved in what could only be called a true gold rush at Kilometre 88, and exploration service organizations were active, particularly geophysical and drilling companies.

Increased attention was attracted by Placer Dome's (owned 70%, Government 30%) apparent major discovery at Las Cristinas, and concessions have been established virtually throughout an area of roughly 30 kilometers (km) by 45 km.

Placer Dome announced that their Conductora and Cuatro Muertos zone contained a resource comprising about 124 Mmt grading 12.3 grams per metric ton (g/mt) of gold at a 0.7 g/mt cutoff, amounting to 4.8 million troy ounces (1,543 kilograms (kg), worth more than $1.8 billion at a projected price of $380 per troy ounce.(1995)

Gold and foreign exchenge reserves were $35.95 billion in 2006.

Industrial Minerals

Cement.—In June, the Venezuelan National Assembly approved the construction of a cement plant in the municipality of Piar in the State of Monagas. The plant, which was a joint venture between C.V.G. (51%) and the Iranian company Ehdasse Sanat Corporation, was under the umbrella of the technical cooperation agreement between the two countries, which was signed in March. The estimated cost for the construction of the plant, which would have a production capacity of 1 million metric tons per year (Mt/yr) and was scheduled to begin production in 4 years, was $196 million (Asamblea Nacional de la República Bolivariana de Venezuela, 2005§; Radio de Venezuela, 2005§).