Mercuria Energy Group and Glencore have separate conversations with venezuelan government to reach an agreement that allows them to operate the state-owned Industria Venezolana de Aluminio CA (Venalum).
It is the largest aluminum foundry in the countryand the news was announced this Friday by the Bloomberg agency citing sources familiar with the matter.
The negotiations, which are being kept confidential because the sources asked not to be identified, They contemplate that the companies operate the plant located in the state of Bolívar and access the metal that it produces.
Although it is not clear what structure an eventual agreement would have, its closure would represent an important incursion by large raw materials operators into the deteriorated Venezuelan industrial sector.
In the case of Mercuria, the marketing company works hand in hand with the private mining investment firm Heeney Capital, with which it has already closed several previous agreements to purchase bulk raw materials and Venezuelan metals, including gold. The sources warned that a final agreement has not yet been reached and that negotiations could still fail.
For Glencore, meanwhile, an eventual agreement would mean recovering presence in Venezuela at a time when the United States seeks to increase its influence over the country and its mineral and oil resources.
When contacted by Bloomberg, spokespersons for Glencore and Mercuria declined to comment, while Heeney Capital and Venezuela’s Information Ministry did not immediately respond to requests.
Venalum, controlled by the Venezuelan State, It is located at the center of an aluminum industry developed around abundant hydroelectric resources and the country’s significant bauxite reserves.
Located in the industrial hub of Puerto Ordaz, the plant has the capacity to produce around 430,000 tons of primary aluminum per year, although its production plummeted after years of lack of investment, electricity outages and economic chaos, according to the same media outlet.
