Venezuela’s state-owned mining company Minerven on Monday signed a multimillion-dollar contract to sell 650 to 1,000 kilograms of Gold Dore bars to commodities trader Trafigura for US markets, Axios reported.
The contract required 98% final gold content, one of the sources said. Trafigura was set to shepherd the gold to US refineries under a separate arrangement with the US govt, the source said.
US Interior Secretary Doug Burgum, who arrived in Venezuela Wednesday to discuss oil and mineral opportunities, helped shepherd the gold contract.
A kilogram of pure gold cost about $166,000.
The price varied depending on the market, but gold’s price rose amid global financial uncertainty. The price of oil rose since the US and Israel attacked Iran, one of the world’s largest oil producers.
The arrangement came as commercial ties between Venezuela and the US tightened after President Trump ousted the country’s indicted socialist dictator and exerted de facto control over its oil-rich petroleum company.
The contract was the third extraction deal made under the Trump administration’s supervision as the US took control of Venezuela’s most crucial and abundant resource, oil. Trafigura was also involved in those oil contracts worth more than $1 billion.
"The oil is beginning to flow, and the professionalism and dedication between both countries is a very nice thing to see!" Trump posted Wednesday on Truth Social, also praising Venezuela’s acting president, Delcy Rodriguez.
Rodriguez on Wednesday announced a plan to reform the country’s mining laws after she met with Burgum.
The US ouster of Nicolas Maduro on January 3 and its subsequent control of Venezuela’s resources drew criticism from congressional Democrats and liberals, who accused Trump’s administration of imperialism and corruption.
But one of the sources familiar with the gold and oil deals said they benefited Venezuela more now because the country had access to US markets and a stable financial system.
"There was so much corruption before in Venezuela involving black-market smugglers who skimmed money off the top," the source said.
"Now the money for Venezuela's resources will go to Venezuela's government and people. And instead of the gold going overseas to Turkey or Iran, that resource is coming to the US."
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