Easing of US sanctions opens a window for renewal in Venezuela's mining sector

Luis Rojas, president of the Cámara Minera de Venezuela, called the easing of sanctions by the US Office of Foreign Assets Control (OFAC) on the country's mining sector positive, according to the newspaper Descifrado on September 10, 2026.

Rojas said the measure, established through the update of General License 51D on September 2, 2026, opens an opportunity for the formalization and renewal of an industrial base that has deteriorated.

The license issued by the US Treasury Department eases operations related to coal and gold in Venezuela. The measure covers state-owned companies such as Carbones del Zulia S.A. (Carbozulia), CVG Compañía General de Minería de Venezuela CA (Minerven), and any entity in which the latter holds a stake of 50 percent or more, according to data published by Descifrado. Rojas explained that this will facilitate the import and repair of technology essential to mining activity.

Although he viewed the measure positively, the industry representative warned that sanctions alone do not extract ore or produce a single ton, and therefore considered that OFAC's decisions fall short of the sector's structural problems. According to Rojas, the core challenge lies in governance, the lack of legal certainty and the absence of transparency, key elements for attracting foreign investment in a solid and accelerated manner.

This easing comes amid a moderate economic recovery in Venezuela. However, attracting capital faces a complex financial environment and high borrowing costs. In this regard, academic Aswath Damodaran of New York University (NYU Stern) estimated in his report of January 1, 2026, that Venezuela's country risk premium stood at 26.66%, a level that significantly raises the cost of external financing and limits the viability of large investment projects.

Going forward, the mining sector requires, according to the chamber, that the public sector open itself to dialogue and to the development of joint projects, as well as resolve pending legal issues to consolidate a stable legal framework.