and other small-scale industry elsewhere. Electrical power generation has been dominated by hydropower, which currently represents over 65% of capacity, with the balance represented by thermal plants using oil and natural gas. Due to frequent electricity shortfalls throughout 2002 and 2003, some due to low water levels for hydropower generation, the MEM unveiled plans for future investment in power generation.

There is a small level of production from the Andes region which generally comprising small underground mines producing coking coal for local consumption, and also in the northeastern region. In 2002 a tender was invited for

development of coal deposits in Anzoátegui State, in the northeastern part of the country and another tender

process was commenced for development of concessions in Falcَn State, in the west of the country, but in neither case has significant development progressed, perhaps as a reflection of the unsettled political and economic climate.

The majority of Venezuela’s mines relocated in the Guasaré Basin near the Colombian border. Fortunately the favourable location of the coalfield to deepwater ports as well as good coal quality, make Venezuela’s coal highly favourable to foreign investment. Production is dominated by Carbozulia, which is owned by Petroleos de Venezuela SA (PdVSA). Carbozulia operates in joint ventures with a number of foreign companies, such as Shell, Ruhrkohle, and Inter-American Coal. Shell Coal was acquired by Anglo American subsidiary Anglo Coal. Here Anglo acquired a 24.9% interest in Carbones del Guasare (CDG) that owns and operates the Paso Diablo mine in the state of Zulia, in northern Venezuela. Paso Diablo is one of Venezuela's largest coal mines and has reserves estimated at 180 Mt. Paso Diablo produced 5.7 Mt in 2003.

There are also a number of additional coal blocks in the Zulia region which are said to be under evaluation and permitting. The most imminent for development and production is Las Carmelitas, situated in the Guajira coal area, west of Maracaibo, which will be operated by Complejo Siderْrgico del Lago CA (Cosila), a subsidiary of Tomen America, which already owns the coal export port of Palmarejo on Lake Maracaibo.

Carbones de la Guajira is the second-largest coal producer and operates Mina Norte with production capacity of around 1.5 Mt in 2003 compared to 1.4 Mt in 2002. Carbones de la Guajira is a joint venture between Carbozulia and Interamerican Coal Inc. The Paso Diablo and Mina Norte operations each truck their coal over 100 km to independent port facilities on Lake Maracaibo, in each case requiring barge transfer and floating cranes for

loading in the main shipping channel of the lake.

Current government plans call for opening the sector up further to private operators, extending concessions to 40 years, and improving tax laws. Several foreign companies have been awarded contracts to manage Venezuelan coal mines.

Petrology, mineralogy and geochemistry of mined coals, western Venezuela

Upper Paleocene to middle Miocene coal samples collected from active mines in the western Venezuelan States of Táchira, Mérida and Zulia have been characterized through an integrated geochemical, mineralogical and petrographic investigation. Proximate, ultimate, calorific and forms of sulfur values, major and trace element, vitrinite reflectance, maceral concentrations and mineral matter content have been determined for 16 channel samples from 14 mines. Ash yield generally is low, ranging from < 1 to 17 wt.% (mean = 5 wt.%) on a dry basis (db). Total sulfur content is low to moderate, ranging from 1 to 6 wt.%, db (average = 1.7 wt.%). Calorific value ranges from 25.21 to 37.21 MJ/kg (10,840–16,000 Btu/lb) on a moist, mineral-matter-free basis (average = 33.25 MJ/kg, 14,300 Btu/lb), placing most of the coal samples in the apparent rank classification of high-volatile bituminous. Most of the coal samples exhibit favorable characteristics on the various indices developed to predict combustion and coking behavior and concentrations of possible environmentally sensitive elements (As, Be, Cd, Cr, Co, Hg, Mn, Ni, Pb, Sb, Se, Th and U) generally are similar to the concentrations of these elements in most coals of the world, with one or two exceptions. Concentrations of the liptinite maceral group range from < 1% to 70 vol.%. Five samples contain > 20 vol.% liptinite, dominated by the macerals bituminite and sporinite.