June 6 (Bloomberg) -- Ternium SA's negotiations with Venezuela over the threatened nationalization of its subsidiary Siderurgica del Orinoco, known as Sidor, are on a ``good road,'' President Hugo Chavez said today.

``Fortunately, we're going down a good road with Sidor,'' Chavez told reporters after a press conference in Caracas. ``They're still working out the details.''

The government, which is increasing ownership of industries such as oil and electricity, wants Sidor to sell more of its product domestically. Chavez threatened to nationalize the company if it didn't comply. Sidor said domestic sales now account for 69 percent of its total, up from 63 percent last year, daily newspaper El Universal reported June 4.

Shares of Luxembourg-based Ternium fell 21 cents, or 0.8 percent, to $26.88 in New York Stock Exchange composite trading.

Chavez said he couldn't provide details on the talks with Sidor because he hadn't seen a final plan. A call to Sidor spokesman Gus Pernalete wasn't answered.

Chavez also said a pending overhaul of the country's constitution won't include provisions to nationalize mines.

The government is continuing to work with Crystallex International Corp., a Toronto-based gold mining company awaiting approval of its environmental impact study for a gold mine in Venezuela, Chavez said.

Richard Marshall, Crystallex vice president of investor relations, declined to comment. The stock rose 14 cents, or 3.2 percent, to $4.47 in after-hours trading as of 6:10 p.m. New York time after declining 6 cents, or 1.4 percent, to $4.33 on the American Stock Exchange.

To contact the reporter on this story: Steven Bodzin in San Francisco at sbodzin@bloomberg.net; Theresa Bradley in Caracas at tbradley7@bloomberg.net.

Last Updated: June 6, 2007 18:19 EDT