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CARACAS, March 5 (Reuters) – United States Interior Secretary Doug Burgum sounded an optimistic note as he prepared to leave Venezuela on Thursday after a two-day visit, telling journalists a new mining \u200claw will create opportunities for companies, licenses allowing them to operate are on the horizon \u200cand the interim government of Delcy Rodriguez has promised to ensure their security.<\/p>\n
Burgum, who also heads the U.S. National Energy Dominance Council, has \u200bhailed efforts by interim President Delcy Rodriguez to open the South American country to foreign investment in oil and minerals, echoing praise by U.S. President Donald Trump.<\/p>\n
Burgum is the second cabinet secretary to visit Venezuela since a January U.S. raid that captured President Nicolas Maduro. U.S. Energy Secretary Chris Wright visited in February.<\/p>\n
Despite having massive reserves of minerals \u200cfrom gold to iron ore, bauxite \u2060and coltan, Venezuela’s output is at a fraction of capacity as plants urgently need major repairs and investment for expansions and upgrades. The country’s main conglomerate, CVG, remains cash-strapped \u2060and under U.S. sanctions, as does state mining company Minerven.<\/p>\n
Following nationalizations under late President Hugo Chavez, foreign investment has been minimal in the last decade. Some experts now see room for an immediate export recovery, particularly for gold, but \u200bhave \u200bwarned that massive investment – even higher than for the oil \u200bindustry- is needed, along with renovated efforts \u200cfor exploration.<\/p>\n
Burgum brought more than two dozen mining and minerals companies with him on the visit, he said, and met on Thursday morning in Caracas with major foreign oil and gas companies as well as the heads of large Venezuelan companies and banks.<\/p>\n
Asked about corruption and security issues – including armed groups which participate in illegal mining in some regions – Burgum said the companies interested in coming into or returning to Venezuela have proven track \u200crecords of integrity and that the new law will be an opportunity for \u200bthem to create jobs.<\/p>\n
“I think you’re going to see this \u200bgovernment very concerned about providing the right kind \u200bof security. We heard assurances in the meeting today and yesterday that if companies \u200cwanted to get to these areas, do due \u200bdiligence, think about reopening mines, \u200bmaybe even getting back to mines that they themselves were running 15 or 20 years ago, that this government would ensure their security,” Burgum said.<\/p>\n
“I’m feeling very optimistic about an environment where investment is \u200bgoing to flow, not just to \u200coffshore oil and gas, not just to Caracas but actually to the interior where these enormous \u200bresources exist,” he added.<\/p>\n<\/p><\/div>\n