- Venezuela’s state-owned mining company Minerven has agreed to sell up to 1,000 kilograms of gold dore bars to commodities trader Trafigura, with the gold destined for US refineries.
- The deal, facilitated during a US visit to Venezuela, is part of increased cooperation between the two countries in mining and resource development.
- Venezuela, which holds Latin America’s largest official gold reserves, is also introducing reforms to its mining legislation to allow mining by foreign companies.
- The US has already received over 80 million barrels of oil from Venezuela.
On Monday, 1 March, Venezuela’s state-owned mining company finalised a deal to sell up to 1,000 kilograms of gold to commodities trader Trafigura, which will be sold on to refineries in the US, reported Axios.
The contract, which requires the gold to be 98% pure, involves Venezuelan-owned Minerven selling 650 to 1,000 kilograms of gold dore bars to Trafigura. The transaction, facilitated by US Interior Secretary Doug Burgum during a recent trip to Venezuela, includes Trafigura managing the transport of the gold to US refineries under a separate agreement with the US government.
Just yesterday, Burgum stated that the two countries would collaborate on mining as well. Venezuela’s congress leader Jorge Rodríguez, who also happens to be interim President Delcy Rodríguez’s brother, empahasised new reforms would enable foreign companies to mine minerals and rare earths.
Venezuela is home to Latin America’s largest official gold reserves. Venezuelan reserves are around 161.2 metric tonnes, which is worth over $23 billion in today’s market.
Since the Trump administration’s capture of former Venezuelan President Nicolas Maduro in the beginning of the year, Venezuela has been governed by a temporary government under interim President Rodríguez. The US and Venezuela have since announced that they have resumed diplomatic relations.
Venezuela’s previous mining legislation has been in effect since 1999. While the exact reforms to the legislation haven’t been disclosed yet, critics have expressed concern by citing the international law resolution on sovereign states having permanent control over their natural and national resources.
Trump also revealed that the US has already received over 80 million barrels of oil from their “new friend and partner,” during his state of the union address last week.
“Delcy Rodríguez who is the President of Venezuela, is doing a great job, and working with U.S. Representatives very well. The Oil is beginning to flow, and the professionalism and dedication between both Countries is a very nice thing to see,” he wrote in a Truth Social post on Wednesday.
