• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 37 mins Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 4 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 1 day IMO 2020 could create fierce competition for scarce water resources
  • 4 hours Total nonsense in climate debate
  • 4 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 1 day IMO2020 To scrub or not to scrub
  • 16 hours Theresa May to Step Down
  • 1 day Devastating Sanctions: Iran and Venezuela hurting
  • 7 hours Will Canada drop Liberals, vote in Conservatives?
  • 1 day Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 8 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 4 hours Apple Boycott in China
  • 8 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Is Venezuela About To Revolutionize Gold Mining With This $5B Deal?

Back from a week in the wilds of Myanmar (more on that in Prime Meridians this coming weekend). To find a lot of action happening globally in both energy and mining.

One story however, stands out in both size and strangeness. From a spot that’s seen a lot of unusual developments in the resource sector lately.

Venezuela.

Late in February, I described how the Venezuelan government had created a new, military company for oil and mining ventures.

And late last week, the country’s central bank announced a major new initiative to revolutionize the country’s gold mining industry. Related: Argentina Charts Course For Renewable Energy

That involves a long-standing player in Venezuela’s gold sector: Spokane, Washington-based Gold Reserve Inc. A company that worked in the country from 1992 to 2009, proving up the 10 million-ounce Brisas gold project.

The Venezuelan government revoked Gold Reserve’s production permits for Brisas in 2008. Causing the company to file an arbitration claim — which was upheld by the World Bank in 2014, with an order for Venezuela to pay $740 million in damages to Gold Reserve.

But Venezuela’s central bank President Nelson Merentes told Bloomberg on Friday that there is a new approach to the project. With Merentes saying that a joint venture has been struck whereby Gold Reserve will retain 40 to 45 percent interest in the project, with the government taking a 55 to 60 percent stake. Related: The Allure Of Shale Is Wearing Off

The most intriguing part of the announcement however, was Merentes saying that Gold Reserve will partner with “the largest gold producer in the world and the largest copper producer” as part of mine development.

Merentes also said that the deal will bring $5 billion in investment funds into the country. With $2 billion going to project development, and $3 billion going to the state.

This sounds bizarre in the utmost — suggesting that incoming players are going to pay billions for the right to operate Brisas. Which would represent a heavy pricetag, even for a 10 million-ounce mine. Related: Oil Price And Its Effect On Production

Equally interesting is the identity of the supposed backers here. With Merentes refusing to name names, but noting that the major partners will come from the U.S., Germany and Canada. (For the record, the world’s largest gold miner is Barrick Gold, while the world’s largest copper producer is Chile’s Codelco.)

All of which makes this an outrageous-sounding — but intriguing — story. Watch to see what details actually materialize here.

Here’s to talking big.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • gregorio on March 02 2016 said:
    Does anyone really believe this fantasy venture?
  • GregSS on March 04 2016 said:
    Gregorio - No I don't believe this for one minute. If anything happens at all, it will be Venezuela taking the money and spending it, and Gold Reserve will be left holding the empty bag.
  • Alexander on March 07 2016 said:
    Difficult to believe, particularly to a corrupt government, with a large taste to lie without pudency

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News