Foreign companies weigh deals to produce coal in Venezuela

Companies such as Glencore and Peabody Energy are considering agreements to produce coal in Venezuela, according to Bloomberg Línea. The negotiations aim to exploit resources in Zulia state, the heart of the country's coal sector.

The revival of the industry comes as the US administration has eased sanctions on the coal sector. This includes authorizing certain trade exchanges and negotiations on new investments, after a mining delegation led by the US government visited Caracas.

According to data published by Bloomberg Línea, Venezuela produced about 350,000 short tons of coal in 2024, a figure far below the 8.7 million tons recorded in 2000. The country also holds about 730 million metric tons of coal reserves, according to the US Energy Information Administration.

The talks focus on operational control and purchase rights rather than direct ownership of the mines. The current infrastructure requires large investments to operate at full capacity and compete with supplies from neighboring Colombia.