Venezuela says it will move at ‘Trump speed’ to unlock mineral wealth
The country’s vast mineral reserves could support a US bid to reduce its dependence on China
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[WASHINGTON] Interim President Delcy Rodriguez told mining executives and metals traders that Venezuela would move at “Trump speed” to help them unlock the South American nation’s mineral wealth.
Rodriguez delivered the assurance to US Interior Secretary Doug Burgum and roughly two dozen of the business leaders meeting inside the Miraflores Palace on Wednesday (Mar 4), according to White House officials familiar with the closed-door talks.
She also promised to advance new mining reforms inside Venezuela and told reporters she was asking the national assembly to work diligently on a package that should mirror changes made to the country’s hydrocarbon law earlier this year.
Oil and gas industry leaders had championed those policy reforms, casting them as essential to fulfil US President Donald Trump’s bid to revive Venezuela’s crude production – and now mining interests are seeking similar assurances.
Trump praised Rodriguez in a post on social media, calling her the “President of Venezuela” and saying she’s “doing a great job, and working with US Representatives very well.” Rodriguez, in turn, thanked Trump for the post in front of a phalanx of journalists who’d gathered outside the palace.
Such is the state of diplomacy between the US and Venezuela roughly two months after the capture of former president Nicolás Maduro – with collaboration coaxed along by the promise of investments in oil and mining.
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Venezuela boasts vast mineral wealth, including conventional materials such as coal, gold and diamonds as well as critical minerals including bauxite, copper and coltan, a metallic ore that can be refined to extract tantalum and niobium.
Those reserves could support the Trump administration’s bid to reduce US dependence on China for minerals used in mobile phones, batteries, jet engines and other products. The administration has already taken steps – including buying stakes in mineral companies and exploring price floors to support production – to wean the US off supplies from Beijing after a trade spat last year halted the flow of some materials.
“In this big world, we’re geographic neighbours with great synergies,” Burgum said, standing alongside Rodriguez, with American and Venezuelan flags providing a backdrop. “There’s been a long history between our two countries of synergy between Venezuela production and US investment – and the opportunities right now are greater than ever.”
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Trump had deployed Burgum to Caracas on Wednesday to consult with oil and mining interests – and Rodriguez – over that investment potential. Energy Secretary Chris Wright made a similar trip to Venezuela last month.
Inside a series of meetings on Wednesday, executives were enthusiastic, people familiar with the sessions said. At one point, Rodriguez asked the business leaders to share their thoughts and suggestions for mining law changes.
Several indicated they were eager to work in Venezuela, said the people familiar with the talks – including executives from Glencore, Peabody Energy, and Gold Reserve Ltd., a miner that has spent years fighting with Maduro’s government over two gold deposits seized by Venezuela.
Paul Rivett, chief executive officer of Gold Reserve, said the company will move fast to reclaim its two gold and copper deposits – Brisas and Siembra Minera – that were seized by Venezuela’s government in the 2000s and 2010s.
“It’s the first time we’re allowed to negotiate here in Venezuela,” he said. “We’ll be back probably in the next seven to 10 days to get to the site. It’s all happening very fast.”
The group included roughly two dozen executives from Hartree Partners, Trafigura Group and other mining and commodities companies, with the gatherings underscoring the seriousness of the US bid to bring private companies into Venezuela to revive oil production and boost mineral extraction.
Burgum, who also leads Trump’s National Energy Dominance Council, emphasised the conflict in the Middle East – which has vividly illustrated how quickly key energy supplies can be disrupted by political disputes – underscores the need to diversify.
“With the events in the last week, I think we realise, again, having diversification of supply chains matters,” Burgum said. “However attractive Venezuela might have been a week ago, it’s probably looking even more attractive right now, and I’m sure all of you and the firms and the capital that you represent understand that as well.”
Business leaders in Wednesday’s talks included Peabody chief executive officer Jim Grech, Lundin Mining CEO Jack Lundin, Orion CMC co-founder Frank Fannon, mining billionaire Robert Friedland’s son Govind Friedland, Paulson & Co partner Marcelo Kim as well as executives from Caterpillar. BLOOMBERG
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