Heeney Capital Wins Rights to Operate Venezuelan Gold Mine
A US investment firm, Heeney Capital, has been granted operational and export rights for a gold mine in Venezuela. The deal was signed on Wednesday by Venezuelan authorities in Houston, where the G20 energy conference is taking place. Heeney will partner with commodities trader Mercuria Energy to operate the Choco mine, which is part of an industrial complex in El Callao, Bolivar state.
The initial investment for the 30-year deal is estimated to be up to $1 billion. This comes as Washington is encouraging US investments in Venezuela after President Nicolas Maduro was captured earlier this year. Energy and mining have been prioritized to receive fresh capital for projects aimed at reanimating output and exports of commodities from gold to crude, with emphasis on shipments to the US.
Continental Resources, a US oil producer founded by billionaire Harold Hamm, is also seeking to enter an oil project in Venezuela. The company signed a memorandum of understanding with PDVSA, Venezuela's state oil company, for the Ayacucho 2 area in the Orinoco Belt, which has an estimated 30 billion barrels of resources in place.