Nice Mine You've Got Here ... It's My Mine Now!

Venezuelan President Hugo Chavez ... who acts as though he's in a sitcom parodying a Latin American strongman ... is at it again. Chavez sent a law to his congress that would give the government control of non-productive gold and diamond fields in the country.

Among companies that have gold concessions or contracts but haven't started production are Gold Reserves Inc. and Crystallex International Corp.

You will remember in the last episode of "Leave It to Hugo," Chavez forced oil companies to pay higher taxes and convert their operations into joint ventures with the government. Venezuela is the world's fifth-largest oil exporter.

And loyal viewers from last season will remember that Chavez promised himself in the mirror that he would stop granting mining concessions to foreign companies while creating a state- owned mining company. That was shortly after he sent his whore to spy on the shopkeeper and before he got in a fistfight with Bullock. Oh wait ... that's Deadwood.

Anyway, Venezuela produced 20.5 metric tonnes of gold in 2004. That's small potatoes compared with Peru which produced 173 metric tonnes. Still ... sucks if you're Crystallex. The company would be producing from its yet-to-develop Las Cristinas tract -- Venezuela's largest gold deposit -- except the government hasn't granted environmental permits the company applied for in April 2004.

Anyway, read all about Hugo's latest adventures here: http://tinyurl.com/nndrb

Check out my new gold and energy blog at MoneyAndMarkets.com