After official hails mining potential, US allows some transactions of Venezuelan gold

March 6 (Reuters) – The United States on Friday issued a license authorizing certain transactions involving Venezuelan-origin gold, the Treasury Department website showed, a day after U.S. Interior Secretary Doug Burgum wrapped up a visit to the South American country focused on mining.

Burgum, who also heads the U.S. National Energy Dominance Council, has hailed efforts by interim Venezuelan President Delcy Rodriguez to open her country to foreign investment in oil and minerals, echoing praise by U.S. President Donald Trump.

He said on Thursday that a new mining law backed by Rodriguez will create opportunities for companies, that licenses allowing them to operate were on the horizon and that Rodriguez has promised to ensure companies’ security.

Transactions with state-owned mining outfit Minerven and its subsidiaries that serve the exportation, sale, purchase, delivery, or transportation of Venezuelan-origin gold into the United States are allowed, so long as contracts are governed by U.S. law, the Treasury statement said. 

Payments made to sanctioned individuals, excluding local taxes or permits, must be made through Foreign Government Deposit Funds, the statement added, and transactions involving debt swaps or digital currency issued by the Venezuelan government are barred.

Transactions involving people in long-time Venezuelan government-allied countries such as Russia, Iran, the Democratic People’s Republic of Korea and Cuba are also forbidden by the license, as are transactions with joint ventures involving China.

Despite having massive reserves of minerals from gold to iron ore, bauxite and coltan, Venezuela’s output is at a fraction of capacity as plants urgently need major repairs and investment for expansions and upgrades.

Both Minerven and state-owned metals conglomerate Corporacion Venezolana de Guayana (CVG) have been under U.S. sanctions for years and following nationalizations under late President Hugo Chavez, foreign investment has been minimal.

Some experts have said they see room for an immediate export recovery, particularly for gold, but have warned that massive investment – even higher than for the oil industry – is needed, along with renewed efforts for exploration.

Burgum brought more than two dozen mining and minerals companies with him on the two-day visit, saying he was optimistic about the expansion of both oil and mining in the country.

Rodriguez, who took up her acting role after the U.S. ouster of President Nicolas Maduro in January, has said that a recent oil reform which lowered taxes, expanded the oil ministry’s decision-making power and granted autonomy for private producers, among other measures, is the model for the law to change mining regulations, which the government has said will be sent to lawmakers soon.

Rodriguez said in January that gold production was 9.5 tons in 2025.

(Reporting by David Ljunggren and Julia Symmes Cobb, editing by Michelle Nichols and Diane Craft)