CARACAS, March 5 (Reuters) – U.S. Interior Secretary Doug Burgum struck an optimistic note as he prepared to leave Venezuela on Thursday after a two-day visit, telling reporters that a new mining law “will create opportunities for companies, licenses that will allow them to operate are on the horizon” and the interim government of Delcy RodrÃguez has promised to guarantee their safety.
Burgum, who also heads the US National Energy Domain Council, has praised interim President Delcy RodrÃguez’s efforts to open the South American country to foreign investment in oil and minerals, echoing praise from US President Donald Trump.
Burgum is the second cabinet secretary to visit Venezuela since a U.S. raid in January that captured President Nicolás Maduro. US Secretary of Energy Chris Wright visited the country in February.
Despite having huge reserves of minerals, from gold to iron ore, bauxite and coltan, Venezuela’s production is a fraction of its capacity, as plants urgently need major repairs and investments for expansions and upgrades. The country’s main conglomerate, CVG, remains with liquidity problems and under US sanctions, as does the state mining company Minerven.
Following the nationalizations of the late President Hugo Chávez, foreign investment has been minimal in the last decade. Some experts now see room for an immediate recovery in exports, particularly gold, but have warned that massive investment, even larger than that of the oil industry, is needed, along with renewed exploration efforts.
Burgum brought more than two dozen mining and mineral companies with him to the visit, he said, and met Thursday morning in Caracas with major foreign oil and gas companies, as well as the heads of large Venezuelan companies and banks.
When asked about corruption and security issues, including armed groups involved in illegal mining in some regions, Burgum said companies interested in entering or returning to Venezuela have a proven track record of integrity and that the new law will be an opportunity for them to create jobs.
“I think you’ll see this government very concerned about providing the right kind of security. We heard assurances at the meeting today and yesterday that if the companies ‌wanted to get into these areas, do the due diligence, think about reopening the mines, maybe even going back to the mines that they themselves were mining 15 or 20 years ago, that this government would ensure their safety,” Burgum said.
“I feel very optimistic about an environment in which investment will flow, not only into offshore oil and gas, not only into Caracas, but also inland, where these enormous resources exist,” he added.