Venezuela

Yin Liwen

The Republic of Venezuela is located in the northern part of the South American continent, bordering Guyana to the east, Brazil to the south, Colombia to the west, and Colombia to the north. Near the Caribbean Sea. It has a land area of ??912,000 km2, a coastline of 2,800 km, and a population of 25.73 million.

The democratically elected President Chávez implemented economic reforms, and the domestic economy experienced significant fluctuations. From 2002 to 2003, political conflicts and large-scale strikes occurred in Venezuela. The Venezuelan national economy experienced a recession and the unemployment rate increased. In 2004, benefiting from the surge in world oil prices, Venezuela's economy began to recover, with GDP reaching US$145 billion, an increase of 16.8% over the previous year.

Venezuela is rich in oil resources. The oil industry has become the backbone of Venezuela’s economy. Oil output value is about one-third of Venezuela’s GDP. Oil revenue accounts for one-half of government revenue. Oil export trade volume Accounting for three-quarters of Venezuela's export trade. Venezuela is also rich in coal, iron, aluminum, gold and diamond resources.

Venezuela ranks fifth in the world in terms of oil exports, and more than 60% of its oil exports go to the United States. Venezuela is of strategic significance to the United States. The Venezuelan government has realized that the oil export market is highly concentrated, which is not conducive to national economic security, and Venezuela has begun to implement an oil export diversification strategy.

1. Reserves and Resources

As of the end of 2005, Venezuela’s remaining recoverable oil reserves were 11.5 billion tons (79.729 billion barrels), ranking seventh in the world and accounting for 10% of the world’s remaining recoverable reserves. of 6.69%, and the reserve-to-production ratio is 72.6. The remaining recoverable reserves of natural gas are 4.32 trillion m3, ranking eighth in the world and accounting for 2.4% of the world's remaining recoverable reserves. Venezuela’s oil resources are distributed in Lake Malakaibo, Malakaibo Basin, the Pacific and Caribbean continental shelves to which Venezuela belongs, and super-heavy oil is distributed in the Orinoco Basin. The Orinoco Basin's prospective oil resources amount to one trillion barrels, and the oil resources are estimated to reach 400 billion barrels based on the recovery rate achievable by new technologies. Natural gas resources are distributed in the East Sea of ??Venezuela.

Venezuela’s coal resources have been discovered mainly in the Guasare Basin in Zulia State. The Guasare Basin is the largest and best coalfield in Venezuela, with reserves estimated at 6.792 billion tons, of which 28.7% are proven reserves. The coal deposit reserves in Tachira State are about 1.07 million tons, most of which are high-thermal power coal containing asphalt. The Pedregal deposit in Falcon State has estimated coal reserves of 100 million tons, of which 4 million tons are proven reserves. The recoverable reserves of Paso Diablo Mine are 200 million tons. The recoverable reserves of Socuy Mine are 215 million tons. The proven reserves of Norte Mine and Cachiri Mine are 70 million tons respectively.

Venezuela’s iron ore reserves are 15 billion tons, of which 170.8 million tons are rich iron ore. Venezuelan iron ore is mainly distributed in Guyana, known as the Imataca iron ore belt. This area is famous for the Cerro Bolivar deposit in the Bolivar Four Corners zone. San Isidro, Las Barrancos and Los Barrancos are open-pit mines. The iron ore of the ALTAMIRA mine is not a rich iron ore and needs to be beneficiated.

Bauxite has been discovered in Venezuela as a weathered laterite type deposit, and the main mineral is trihydrate bauxite. The developed bauxite mine is located in Los Pijiguaos, in the state of Bolivar.

Nickel deposits have been discovered in Venezuela as laterite-type nickel deposits. The largest nickel mine is Loma de Niquel, 80km southwest of the capital Caracas, with ore reserves of 41 million tons and a nickel grade of 1.6%.

Venezuela’s discovered gold resources are mainly distributed in Bolivar State, including placer gold and rock gold. At the La Camorra mine in Bolivar state, the total proven and probable reserves are 743,000 tons of ore, with a gold grade of 19.5g/t. In the Choco No. 10 gold mine in Bolivar state, the confirmed resources are 13.7 million tons of ore with a gold grade of 2.5g/t, and the inferred resources are 2.3 million tons of ore with a gold grade of 1.9g/t and a marginal grade of 0.5g/t. According to the test data of 7 diamond drilling cores, the gold grade ranges from 2.8 g/t to 12.4 g/t. At the Isidora mine in Bolivar state, the total proven and probable reserves are 453,500 tons of ore, with a gold grade of 18.62g/t. The Las Cristinas gold mine located in the southeastern Bolivar State of Venezuela is the largest gold mine discovered in Venezuela after 1996. It is also one of the largest undeveloped gold mines in South America and the world. However, the gold grade is relatively low and the confirmed reserves are and probable reserves totaling 13.6 million oz at an average grade of 1.2 g/t, identified and inferred resources (including reserves) of 17.7 million oz at an average grade of 1.1 g/t, and inferred resources of 4.5 million oz at an average grade of 1.1 g/t. In the Tomi mining area, there are open-pit mining deposits and underground mining deposits. The open-pit mining deposit has an approximate reserve of 300,000 tons of ore with a gold grade of 4.6g/t. The underground mining deposit has an approximate reserve of 140,000 tons of ore with a gold grade of 15.2g/t. . It is expected that by 2005, open pit mine reserves will be exhausted.

The approximate reserves of La Victoria Mine are 1.215 million tons of ore, with a gold grade of 5.2g/t. The Albino mine adjacent to the Las Cristinas mine has proven and probable reserves of 270,000 tons of ore, with a gold grade of 12.04g/t. The Brisas del Cuyuni gold and copper deposit is located in the KM88 mining area of ??Bolivar State. It is a world-class open-pit gold mine. It is consistent with the SME reporting guidelines and CIMM standards. The basic work was completed by PAH. The estimated confirmed reserves and probable reserves are 1010 gold. 10,000 oz, 1.3 billion pounds of copper, ore reserves of 446 million tons, gold grade 0.70g/t, copper grade 0.13%; estimated at a cut-off grade of 0.4g/t gold equivalent, the confirmed and inferred resources are 12.4 million oz of gold , 1.6 billion pounds of copper.

Venezuela’s diamond mine, which has been developed for more than 40 years, is located in the Guaniamo region of Bolivar State. Kimber conglomerate was first identified in the Guayamo region in 1978. The kimber conglomerate vein is 15 km long and 5 km wide, making it the largest kimber conglomerate vein in the world.

Table 1 Venezuela’s main mineral reserves

Note: ① BP Statistical Review of World Energy, 2006.6;

② WWW: Vheadline.com;

③ Mineral Commodity Summaries, 2005.

2. Mineral Exploration and Development

In recent years, the exploration and development of oil, natural gas and gold minerals in Venezuela have been very active. The Venezuelan Ministry of Energy has approved France’s Total and Norway’s Statoil as partners to explore and develop Block 4 of Plataforma Deltana. Venezuela’s national oil company PDVSA is preparing to cooperate with BP to conduct cross-section reservoir studies in the Kapok and Dorado areas. The Venezuelan Ministry of Energy and Mines plans to invite 15 private oil companies to bid for the exploration and development of the Ceuta Tomoporo oil field, and invites Rosneft to participate in the development of the Tomoporo oil field. Spain's Repsol-YPF, Norway's Statoil, Total SA and Exxon Mobil and Chevron Texaco have expressed interest in exploring and developing the field. The Venezuelan government has announced an opportunity for companies to develop the Cretaceous carbonatite reservoirs of Lake Malakaibo.

In 2005, 1,280 wells were drilled for oil exploration in Venezuela. The Venezuelan government hopes to mobilize oil companies from various countries to explore Venezuelan onshore and offshore oil. PDVSA has begun work to determine the amount of excess oil in the Orinoco Basin, with the expectation that by the end of 2008, its registered oil reserves will reach 315 billion barrels (42.966 billion tons). According to expert estimates, the Orinoco River Basin contains more than one trillion barrels of overweight oil resources. Based on the current new technology recovery rate of 20%, the oil resources are 400 billion barrels. The oil reserves in the Carabobo 1 block have been verified. 5 billion barrels. In the Orinoco Basin, Petroleos de Venezuela has set aside 7 blocks for cooperative exploration with foreign companies. The Carabobo 1 block is jointly explored and developed with Petrobras, and the reserves of the other 6 blocks are evaluated in cooperation with other companies. The work is ongoing, specifically: Ayacucho 7 block is explored in cooperation with the Iranian National Oil Company; Ayacucho 3 block is explored in cooperation with Gazprom, and Junin Norte block is explored in cooperation with India's National Oil and Gas Corporation (ONGC) For exploration, Junin 3 is a joint exploration with Russia's Lukoil, Junin 4 is a joint exploration with China National Petroleum Corporation, and Junin 7 is a joint exploration with Spain's Repsol YPF. Petroleos de Venezuela also independently conducts reserve verification work in 17 other exploration blocks. It is estimated that it will take three years to complete the reserve verification work.

The Venezuelan Ministry of Energy and Mines plans to invest US$1 billion to develop five onshore natural gas fields. There are 3 trillion cubic feet of natural gas in Cardon II off Venezuelan waters, and Venezuela's National Company and Iran's National Oil Company will jointly develop the gas field. ChevronTexaco of the United States bid to explore Blocks 2 and 3 of Plataforma Deltana and has reportedly discovered 7 trillion cubic feet of natural gas.

The Venezuelan national company C.V.G.Minerven is responsible for all gold exploration and development projects. Venezuela’s Ministry of Basic Industry has approved Crystallex International’s cooperation with Venezuelan CVG Company to develop the Las Cristinas gold mine project in Bolivar State, which marks the final solution to the technical, economic and financial problems of the development of the gold mine. The project invested 179 million USD, the project has started construction and is expected to be put into production in 2008. The annual gold output in the first five years will be 300,000 oz. Gold Reserve Company (GRZ) is exploring and developing the Las Brisas mine in Bolivar state. The project is expected to produce 486,000 oz of gold and 63 million pounds of copper annually.

Venezuela Carbones del Suroeste, C.A. Company plans to develop the coal industry in southern Venezuela, mainly developing coal resources in the Tachira area.

3. Production, Consumption and Mineral Products Trade

1. Energy Production and Consumption

The democratically elected President Chávez came to power and promoted the nationalization of the energy industry. The National Petroleum Corporation (PDVSA) established in 1976 was reformed into a fully state-owned PDVSA. The Venezuelan government gave the PDVSA new functions. The new PDVSA is responsible for energy and mineral exploration and development, petrochemicals, reserves, transportation and other petroleum products. The fundamental goal of the domestic and foreign markets for products is to support the harmonious development of the country, protect national resources, and allow the Venezuelan people to benefit from the country’s wealth. The Democratic Republic of Venezuela is the only shareholder of the National Petroleum Company (PDVSA). All actions of the National Petroleum Company must follow the guidance of the Venezuelan Ministry of Energy and Mines and comply with the national energy development plan.

Venezuela is an important oil producer in the world, with output ranking among the top 10 in the world; it ranks third in the Americas, after the United States and Mexico. The changes in Venezuelan oil production in the past 11 years are shown in Figure 1. From 2002 to 2003, political conflicts and large-scale strikes occurred in Venezuela. Oil workers also participated in the strike, and oil production was reduced. In 2004, anti-government activities in Venezuela were suppressed, the Venezuelan economy began to recover, and oil production gradually returned to normal. In 2004, Venezuela's crude oil production was 2,972 thousand barrels per day (converted annual production was 153.4 million tons), an increase of 14.3% over 2003. In 2005 Venezuelan crude oil production continued to increase in 2016, reaching 3,007 thousand barrels per day (equivalent to annual production of 154.7 million tons), accounting for 4% of the world's total crude oil production.

Figure 1 Trends in Venezuela’s oil production and domestic consumption

57% of Venezuela’s crude oil production is produced in the Oriental Basin, and 40% of its crude oil production is produced in Malaysia. basin. 31% of Venezuela’s crude oil production comes from private companies. Private companies produce and operate through production contracts and strategic alliances. The crude oil output produced under production contracts is 170 million barrels (23.19 million tons), and the crude oil output produced under strategic alliances is 170 million barrels (23.19 million tons). 156.6 million barrels (21.36 million tons). The strategic alliance is to expand Venezuelan oil production through the development of Orinoco super-heavy oil.

Venezuela’s oil refining capacity has grown slowly. In 1996, the refining capacity was 1,199,000 barrels/day, which increased to 1,357,000 barrels/day in 2005. There are 6 petroleum refineries in Venezuela. The Amuay Refinery in Falcon State is the largest in Venezuela, accounting for 44% of its production capacity. The Cardon Refinery is the second largest in Venezuela, accounting for 28% of its production capacity.

Venezuela’s domestic crude oil consumption has been relatively stable in the past 11 years. The highest consumption level in 2002 was 27 million tons. In other years, it ranged from 19 million tons to 25.4 million tons. In 2005, Venezuela’s domestic crude oil consumption was 25.4 million tons. million tons, an increase of 5% over 2003, accounting for 0.7% of the world's total crude oil consumption.

According to the British World Energy Statistics Report, Venezuela’s natural gas production ranged from 25.2 billion to 32.3 billion m3 from 1995 to 2005. The highest was 32.3 billion m3 in 1998, the lowest was 25.2 billion m3 in 2003, and the lowest in 2005. Natural gas production increased to 289 natural gas production, accounting for 1% of the world's total natural gas production.

Venezuela’s natural gas is all consumed domestically. It sells as much as it produces. Converted in terms of oil equivalent, natural gas consumption in 2005 was 26.1 million tons, an increase of 3.2% over 2004, accounting for 1% of the world’s total natural gas consumption. .

According to the U.S. Geological Survey's "Mineral Yearbook" 2004, The Mineral Industry of Venezuela reported that the total natural gas development volume in Venezuela remained above 60 billion m3. The total volume in 2004 was 67 billion m3, and the market sales volume is 34 billion m3. The Yucal Placer gas field began production in April 2004. The Yucal Placer gas field is one of the six natural gas fields in Venezuela. It is developed through joint ventures with multinational companies, of which Total S.A. of France holds 69.5% of the shares. The output of Yucal Placer gas field is 2830m3/day.

In Latin America, Venezuela ranks second in coal production. Venezuela's coal output in 2004 was 8.1 million tons, an increase of 16% over the previous year. Most of Venezuela's coal production is produced in the state of Zulia. Carbozulia S.A., a subsidiary of PDVSA, the national company responsible for coal development, was restructured into a government company (Corpozulia) and ventured into joint ventures with two private companies to develop coal resources, Carbones del Guasare Company and Carbones de la Guajira Company. Paso Diablo is the largest coal mine in Venezuela. The combined coal output of Paso Diablo Coal Mine, Socuy Coal Mine, Norte Coal Mine, and Cachiri Coal Mine can reach 8 million tons.

Venezuela's coal consumption has been relatively stable in the past three years. Converted in terms of oil equivalent, from 2003 to 2005, coal consumption was 100,000 tons (oil equivalent).

In the past 10 years, Venezuela’s hydropower has increased year by year. In 2005, it increased to 17.6 million tons (oil equivalent), an increase of 11.4% from 2004, accounting for 2.6% of the world’s total hydropower.

In the past 10 years, Venezuela’s total energy consumption has varied between 56.4 million and 69.1 million tons (oil equivalent). The proportion of hydropower has increased, the proportion of natural gas has decreased, and the proportion of oil has fluctuated slightly. In 2005, the energy consumption composition was as follows , oil 36.76%, natural gas 37.77%, hydropower 25.47%.

2. Production and consumption of metal minerals

Venezuela develops iron, aluminum, nickel, gold and other metal minerals and precious metal minerals. Bauxite, gold and iron ore production and operations are almost entirely controlled and managed by the government through the Venezuelan Company of Guyana (C.V.G). Venezuelan iron ore production has been completely nationalized since 1975, and the only development company is Ferrominera Orinoco C.A. But in 1997, the Venezuelan steel company SIDOR was privatized, and the Venezuelan steel industry was actually controlled by private companies, with the government only retaining a small interest through the state company (C.V.G.).

In Latin America, Venezuela ranks second in iron ore production and fourth in steel production. In 2004, Venezuela's iron ore output was 19.2 million tons, an increase of 6.7% over 2003. The main sources of iron ore in Venezuela are the Cerro San Isidro open-pit mine, Las Pailas open-pit mine and Barrancos open-pit mine. In 2004, Ferrominera Orinoco C.A invested US$130 million in strategic business areas, of which US$83.2 million was invested in the construction of the mineral processing plant, the improvement of the metallurgical pellet plant and the re-production of the Altamira mine. As hot-briquetted iron ore (HBI) prices reach historic highs, Venezuela has made efforts to increase HBI production. Orinoco Iron C.A. produces HBI with a production capacity of 2.2 million tons/year.

In the world, Venezuela ranks eighth in bauxite production, ninth in alumina production, and twelfth in aluminum production. In Latin America, Venezuela ranks second in aluminum production and third in bauxite and alumina production. Venezuelan bauxite development is concentrated in the Los Pijiguaos mine in Bolivar State. The mine is owned by the Venezuelan Guyana Aluminum Company (C.V.G.Bauxilum C.A) and has a bauxite production capacity of 6 million t/year. Bauxite production has increased steadily since 1997. Bauxite output in 2004 was 5.8 million tons, an increase of 5% over the previous year. Alumina production was 1.9 million tons, a slight increase over the previous year; aluminum production was 631,100 tons, an increase of 4% over the previous year. Venezuelan aluminum production is mainly produced in two aluminum smelters, both of which are majority owned by C.V.G. The largest one is C.V.G.Bauxilum C.A enezolana de Aluminio C.A., with a production capacity of 430,000 tons/year, and the output in 2004 reached 438,700 tons. Another aluminum smelter is C.V.G. Aluminio del Croni, with a production capacity of 210,000 tons/year and an aluminum output of 184,900 tons in 2004. In 2004, Venezuela's domestic aluminum consumption was 150,600 tons, a decrease of 16.93% compared with the previous year.

Venezuela has started producing nickel and nickel alloys since 2000. Nickel ore is produced from the Loma Nickel Mine, an iron-nickel alloy plant located on the border of the states of Aragua and Miranda. The nickel mine and iron-nickel alloy plant are operated by Loma, which is majority owned by Anglo-American Group. The mine's nickel output in 2004 was 20,500 tons, slightly less than in 2003; the nickel content in the iron-nickel alloy was 17,200 tons.

Venezuela’s official gold production in 2004 was 9,690kg, an increase of 18% over 2003. Venezuelan gold is mainly produced from international joint ventures that have operating agreements with C.V.G. The gold output of Hecla's Venezuelan subsidiary is 4,100kg. Its gold mine La Cmorra is located in Bolivar State. The mine's gold output is 3,900kg. Another 150kg of gold is obtained from the processing of ore purchased from other small mines. Hecla is developing the Isidora gold mine, which is located 113km north of the La Cmorra mine in the Callao mining area (also known as Block B). Production is expected to begin in 2005 and be at full capacity in 2006. Crystallex's Venezuelan subsidiary has a gold output of 1,540kg. Within the Tomi mining rights of the EI Callao mining area, the company operates two open-pit mining sites and an underground mining site. The Tomi mine has a gold output of 1,300kg; the underground mining La Victoria mine has a gold output of 75kg. Production fell by 65%, mainly due to the decline in the gold grade of the ore.

Crystallex has signed a mining operation agreement with Venezuelan C.V.G. and is actively involved in the development of the Las Cristinas gold mine. Las Cristinas is the most promising gold mine in Venezuela and has not been developed due to years of ownership struggles. In 2004, Crystallex announced that C.V.G had approved the feasibility study for the development of the Las Cristinas gold mine. The engineering design had been 66% completed. The construction of the project was scheduled for 2005 and mining would begin in 2006. Bolivar Gold Company plans to expand the mineral processing plant to increase annual gold production to 5,400kg.

3. Non-metallic mineral production and consumption

The non-metallic minerals developed in Venezuela include phosphate rock, limestone, diamond, gypsum, kaolin, serpentine and feldspar and other non-metallic minerals and gems. In Latin America, Venezuela ranks second in phosphate rock production, less than Brazil, and ranks third in cement production, after Brazil and Mexico.

Venezuela’s cement production in 2004 was 9 million tons, an increase of 17% over 2003, accounting for 7% of Latin America’s cement production. Venezuela's construction industry was relatively prosperous in 2004, with cement sales increasing to 3.5 million tons, an increase of 35% over 2003.

Table 2 Venezuela’s main mineral product output

Continued table

Note: ①BP Statistical Review of World Energy, June 2006.

Data source: Mineral Yearbook, 2004, The Mineral Industry of Venezuela.

4. Mineral product trade

Venezuela is one of the important oil exporters in the world, ranking fifth in the world in terms of oil export volume. Revenue from oil exports is Venezuela’s main source of foreign exchange earnings. Venezuela's total export trade in 2004 was US$39.8 billion, an increase of 42% from US$28 billion in 2003; of which oil exports were US$31.9 billion, accounting for 80% of the total export trade. Venezuela also exports coal, aluminum, nickel, gold, diamond and cement products. The total import trade was US$22 billion, an increase of 55% over 2003; of which oil imports were US$1.9 billion, accounting for 8.5% of the total import trade.

In 2004, Venezuelan oil exports were 2.1 million barrels per day, of which 1.53 million barrels per day were exported to the United States, accounting for 73%. In 1997, the proportion of Venezuelan oil imported by the United States was 17%. In 2004, it accounted for 11.8% of the United States' import demand. The proportion of Venezuelan oil imported by the United States has shown a downward trend. Venezuela's new oil export terminal in Port Jose has been completed, increasing its oil export capacity by 230,000 barrels per day.

Venezuela is one of the world’s important exporters of primary aluminum. In the past five years, the export volume of primary aluminum has ranged from 386,000 to 437,000 tons. In 2004, the export volume was 386,000 tons, a decrease of 1.5% compared with 2003. Nickel alloy exports were 65,300 tons.

IV. Mining regulations and management

Venezuela’s current mining law is Order No. 295 issued in 1999. Under the Mining Act, all mineral resources and hydrocarbons belong to the state, and the Ministry of Energy and Mines (MEM) is responsible for all matters related to mining activities.

Venezuela’s Mining Law stipulates that the exploration and mining license period is 20 years, and you can apply for an extension for no more than 20 years. The exploration license period is 3 years and can be extended by 1 year. The exploration or mining area of ??one license shall not exceed 6156hm2. During exploration, environmental, financial and technical feasibility studies must be submitted to the Ministry of Energy and Mines. With the consent of the Ministry of Energy and Mines, exploration and mining licenses can be leased, transferred or entered into sub-contracts. The Mining Law stipulates that the production tax rate for gold, silver and platinum group metals is 3% of the commodity value in the Caracas market, the production tax rate for diamonds and gemstones is 4% of the commodity value in the Caracas market, and the tax on other minerals is based on the mine ore value. The 3% tax rate on the product value is calculated. In specific implementation, when economic conditions require, the production tax rate can be reduced to 1%. The Mining Law promulgated in 1999 established mining cooperation rules and small mine regulations for the first time. The definition of small mines is based on diamond and gold mines. The mining area shall not exceed 10hm2, the number of employees shall not exceed 30, and the maximum development period shall be 10 years.

The Geological Survey of Venezuela is an independent department under the Ministry of Energy and Mines. It is responsible for geological scientific research. It is responsible for planning, executing and coordinating all procedures related to geological scientific research. It is responsible for the evaluation of minerals and non-traditional energy minerals. , provides technical support to governments and private companies, and publishes scientific and technical information.

Venezuela’s mining regulations and policies are revised and adjusted frequently. In September 2001, Order 1234, the basic rules of the Mining Law, was issued to establish administrative procedures to support Order 295. Decree No. 1510 was passed in November 2001, stipulating that all hydrocarbon deposits belong to the state and all major hydrocarbon development activities belong to the government. The government can directly conduct major hydrocarbon development activities, or they can be performed by government-owned companies, or by Developed by joint ventures in which the government holds more than 50% equity. The maximum area for production companies developing hydrocarbons is 100km2.

Venezuela’s Mining Law stipulates that the establishment of a joint venture to develop hydrocarbons must be approved by the National Federation and is valid for 25 years, which can be extended for 15 years. The Venezuelan government has the right to share 30% of the output of any energy deposit, that is, resource ownership. If economic conditions are poor, it can be reduced to 20%. The Orinoco heavy oil development project cannot reach 30%, and the ownership share of production can be reduced to 16%.

In 2005, the Venezuelan government announced that contracts to develop oil in Venezuela must be converted into joint ventures with the government, so that the Venezuelan government will be able to control the profits from the oil.

In 2006, the Venezuelan Ministry of Mines announced the abolition of undeveloped gold and diamond mining licenses and the disposal of gold and diamond mining licenses and contracts.

V. Outlook

With its abundant oil resources and growing economic strength, Venezuela is playing an increasingly important role in the economic development of Latin America and the Caribbean. The development of the world economy will also play a positive role.

The Venezuelan oil industry will continue to play an important role in the American energy supply system. Venezuela plans to jointly build an axis of natural gas pipeline projects with Brazil and Argentina, starting from Caracas to Brasilia to Bui North Aires, the project is currently hotly debated. The main line of the project is 6,603km long, with a total length of 9,283km. The estimated cost is US$23 billion. The Venezuelan government plans to increase natural gas production to 326 million m3 per day by 2012 to meet domestic and export demand. The Venezuelan government plans to increase crude oil production to 500 barrels per day by 2009. The Venezuelan government is actively seeking to diversify the flow of oil exports and increase crude oil exports to countries or regions such as Brazil, India, and China. Venezuela is expanding its coal production capacity and increasing coal exports. It is expected that coal exports will be 19 million tons by 2009 and will increase to 27.5 million tons by 2013.

Venezuela hopes to play an important role in the development of the mining economy in South America. CONIBA is a newly established mining company in Venezuela. Its goal is to support South American mining projects through protection and integrate the South American mineral resource industry. Venezuela has established strategic alliances with Brazil and Argentina to cooperate in the development of mineral resources.

Venezuela has formulated an energy policy guideline to 2030 called the "Oil Seeding Plan". The plan is implemented in two phases, of which the first phase is from 2005 to 2012, with a total investment of US$56 trillion. , complete the following 6 basic projects. ① Determine and verify oil reserves in the Orinoco Basin; ② Develop the Orinoco Basin; ③ Develop Venezuelan natural gas resources; ④ Expand Venezuela’s oil refining capacity. The oil refining capacity of the national oil company PDVSA will increase to 700,000 barrels per day ; ⑤ Strengthen infrastructure construction, build more gas stations and longer oil and gas transportation pipelines; ⑥ Strengthen regional cooperation, unite the people of Latin American and Caribbean countries with oil resources, and directly supply crude oil to Caribbean countries through Petrocaribe Cooperative Company and petroleum products.

Main references

[1]Ivette E.Torres.The Mineral Industry of Venezula.Mineral Yearbook, 2004

[2]British Petroleum Company.BP Statistical Review of World Energy, June 2006

[3]World Bureau of Metal Statistics.World Metal Statistics, 2005