London, March 30 (Argus) - On Friday, the U.S. Department of the Treasury issued new and revised general licenses regarding investment and operations in Venezuela's critical minerals sector, modifying mineral-related sanctions against the country under strict guidelines.
According to the Treasury Department's website, the new licenses authorize the "provision of certain goods and services for mineral operations," as well as the "negotiation and signing of contingent contracts regarding certain investments in Venezuela's mineral sector." For entities subject to U.S. jurisdiction, this includes authorization to enter into contracts with Venezuela's state-owned mining company, Minerven.
Additionally, a separate general license issued previously was revised to authorize the extraction of other Venezuelan-origin minerals, building upon preliminary authorization for gold added on March 6.
The Treasury Department stated that these licenses are part of an effort to "bring Venezuela's economy back online and redirect investment to benefit both Americans and Venezuelans."
Venezuela is believed to possess significant reserves of metals critical to technology and national defense. Based on 2009 data, a 2021 government map lists copper, nickel, coltan (columbite-tantalite), and uranium, though it does not specify quantities.
Nevertheless, illegal mining and underdeveloped infrastructure pose significant challenges for any U.S. companies seeking to conduct business within Venezuela's metals sector.
The Orinoco Mining Arc (AMO)-one of Venezuela's richest mineral regions-comprises a vast area in the southern state of Bolívar that was designated a strategic development zone in 2016. Covering approximately 12% of the country's territory, the AMO holds reserves of coltan, bauxite, gold, and other metals.
Several public-private partnerships operate within the coltan-rich areas, including an agreement signed in 2016 between the state-owned CVM and the private firm Faoz. The Venezuelan Armed Forces also operate the mining company Camimpeg within this region. However, mining operations in the region are plagued by the illicit activities of non-governmental militias, including the National Liberation Army (ELN) and the Acacio Medina Front-a dissident faction of the Revolutionary Armed Forces of Colombia (FARC) associated with *Segunda Marquetalia*. According to data from the U.S. Department of State, the illicit economy of mineral smuggling and money laundering in the region is valued at $2.2 billion annually.
Earlier this month, U.S. Secretary of the Interior Doug Burgum offered assurances to investors seeking to conduct business in the region following a meeting in Caracas with Venezuelan Vice President Delcy Rodríguez.
He stated: "We received assurances that if companies wish to enter these areas-to conduct due diligence, consider reopening mines, or even return to mines they themselves operated 15 or 20 years ago-the government will ensure their safety."
On March 9, the National Assembly of Venezuela-controlled by the ruling party-passed a new mining law in a preliminary vote, aiming to open the sector to increased investment.
The country has endured a prolonged economic recession; despite the U.S. easing sanctions to boost the oil industry, an economic recovery has yet to materialize. Venezuela's local currency, the bolívar, has depreciated by nearly 20% against the U.S. dollar, while the country's annualized inflation rate-the highest in the world-averages 600%.
