The Government of Venezuela signed this Friday a memorandum of understanding on mining matters with the American company Heeney Capital, which will be associated with the Swiss Mercuria Energy Group, which means the first agreement in this area endorsed by the White House after the capture of Nicolás Maduro, on January 3.
“With this signing of this agreement it is the first step to strengthen ties in mining matters between the North American Government and the Government of Venezuela,” said the head of the Ministry for Mining Development, Héctor Silva, in a broadcast on the state channel Venezolana de Televisión (VTV).
This signature is the materialization of the United States’ interest in the area of mining in Venezuela, producer of gold, nickel, iron and bauxite among others, which until now had been concentrated in the oil area.
The memorandum was signed by Silva and by Sean Pi, representative of Heeney Capital, at the Miraflores Palace, headquarters of the Executive in Caracas, where James Gilbert, general director of investments of Mercuria, also attended in an event broadcast by VTV.
Silva anticipated a “significant investment,” technology for the development of reserves, as well as the certification and development of production in Venezuela.
In a statement, the Mercuria company reported this Friday that, in association with Heeney Capital, which is based in New York, “it has secured a series of strategic purchase and sale agreements in Venezuelan bulk raw materials and gold projects, as part of a broader initiative supported by the White House to revitalize the energy and mining sectors.”
“Mercuria and Heeney Capital are jointly focused on driving investment in the Venezuelan mining sector to improve the security of supply of key industrial raw materials,” Mercuria said on its website.
They expect exports of 2.2 billion dollars annually
The agreements were promoted within the framework of the visit to Caracas of a high-level delegation made up of US government officials and industry representatives, with the aim of facilitating “new investment frameworks and supply agreements in the oil and mining sectors.” according to the press release.
“The Mercuria agreements, supported by associated investment commitments, are expected to generate approximately $2.2 billion in annual mineral exports,” he stressed.
Likewise, he assured that these transactions align with the “continued efforts of US authorities to encourage responsible foreign investment in Venezuela’s extractive industries and facilitate purchasing structures that prioritize supply to Western markets.”
On the other hand, Mercuria noted that it is “actively exploring new opportunities in the aluminum, nickel and ferrous metals sectors.”
“These potential transactions, subject to regulatory approvals, could represent an additional US$3 billion in annual mineral exports, reinforcing Venezuela’s role as a supplier of essential inputs to global industry,” he added.
In April, the Venezuelan Parliament, controlled by Chavismo, unanimously approved a new mining law that opens the sector to private and foreign investment in the face of the United States’ express interest in Venezuelan gold.
With information from EFE
