International Trade Issues In Mining

Venezuela Mining Sanctions Update

The U.S. has relaxed sanctions on Venezuela’s mining sector through new authorizations issued by the US Treasury’s Office of Foreign Assets Control (OFAC). The relaxation is significant for mining investors, including those investing in or alongside Canadian mining, streaming, or royalty companies with US exposure (e.g., US subsidiaries, US-dollar financing, US investors, or US trading and processing arrangements). Canada has not relaxed its sanctions, creating a material divergence that investors should factor into diligence and valuation.

OFAC recently issued General Licenses GL 51A, GL 54 and GL 55 expanding permitted activity in Venezuela’s minerals sector. GL 51A allows US entities to trade all Venezuelan‑origin minerals; GL 54 permits US persons to supply goods, equipment, technology, and services for mining and production; and GL 55 allows negotiation of contingent investment, streaming, or royalty agreements, subject to OFAC approval. OFAC