The Venezuelan Government is assessing non-essential state assets for potential transfer to private businesses or former owners, with mining infrastructure included in the review.
Interim President Delcy Rodriguez says the valuation process is at an advanced stage, although the government has not identified the assets, disclosed valuations, or outlined how potential transactions would be structured.
A government commission appointed in April has been reviewing state-owned assets across the mining, energy, and power sectors, according to Reuters.
Rodriguez also says negotiations are underway over several mining projects. The prospective investors, projects, investment amounts, and proposed ownership structures have not been disclosed.
“Important negotiations are underway in the mining sector, specifically regarding gold, aluminium, and iron,” Rodriguez says.
Existing mineral deals
Venezuela has already signed agreements with privately held Mercuria Energy Group and Heeney Capital covering gold and aluminium.
The companies plan to restart the Choco gold mine in Bolívar state under a proposed 30-year investment plan, beginning with US$1 billion ($1.41 billion). They have also agreed to ship aluminium from the state-owned Venalum smelter to the US, as previously reported by Mining.com.au.
In September, the US Government sought greater access to Venezuelan minerals and had consulted companies about potential investments.
However, analysts cited by Reuters warned that outdated geological information, weak infrastructure, and illegal mining could complicate investment decisions.
Venezuela’s new mining law, enacted in April, allows domestic and foreign private companies to develop gold and other strategic minerals. Mineral deposits remain state property, while concessions may run for up to 30 years with two potential 10-year extensions.
Offering assets to private operators could reverse parts of the nationalisation program undertaken under former president Hugo Chavez. More than a dozen related international arbitration claims remain unresolved.
The US Geological Survey says Venezuela produces gold, iron ore, bauxite, and aluminium, although it is not currently a globally significant mineral producer.
Write to France Pinzon at Mining.com.au
Main image: Venalum
