Venezuela’s state-owned mining company, Minerven, has entered into amultimillion-dollar agreement to supply between 650 to 1,000 kilograms of Gold Dore bars to the commodities trader Trafigura, aimed at US markets, as reported by Axios. The contract stipulates a final gold content of 98%.

Details of the Contract

Trafigura is expected to manage the transport of this gold to US refineries under a separate arrangement with the US government. The transaction was facilitated by US Interior Secretary Doug Burgum, who was in Venezuela on a trip to explore opportunities in oil and minerals.

Current Gold Prices and Market Conditions

The current market price of pure gold is approximately $166,000 per kilogram and is subject to fluctuations influenced by global financial instability. The price of oil has seen an increase following recent attacks involving the US and Israel on Iran, which is one of the largest oil producers globally.

Ties Between Venezuela and the U.S. Strengthen

This agreement is part of a trend of tightening commercial ties between Venezuela and the US, following the removal of former President Nicolas Maduro, whose socialist regime faced indictment. The US has assumed effective control over Venezuela’s significant oil resources, and this gold contract marks the third extraction deal executed under the oversight of the Trump administration, which also oversaw oil contracts exceeding $1 billion.

Reforms and Benefits to Venezuela

Venezuelan acting president Delcy Rodriguez announced a reform initiative for the country’s mining laws after her meeting with Burgum. The US’s actions regarding Venezuelan resources have attracted criticism from some congressional Democrats and liberal factions, who accuse the Trump administration of engaging in imperialism. However, sources close to the gold and oil agreements assert that these deals ultimately benefit Venezuela by providing access to US markets and a stable financial framework.

Elimination of Corruption in Resource Management

According to a source familiar with the situation, previous practices involving black-market smugglers siphoned off significant funds, detrimentally impacting the nation’s economy. In contrast, the current framework ensures that revenues from Venezuela’s resources will be directed to the government and, by extension, the Venezuelan people, rather than being sent to other countries like Turkey or Iran.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share