Trafigura Collaborates with Minerven for Ethical Gold Sourcing

Trafigura partners with Venezuela's state miner Minerven to initiate a responsible gold sourcing program. This move is part of a pre-payment deal for gold dore aimed at improving mining standards in Venezuela, allowing its gold to access international markets despite previous sanctions and ethical concerns.

In a significant development, Trafigura has joined forces with Venezuela's state gold mining entity Minerven to establish a responsible sourcing program, as confirmed by the Swiss commodity trader. This initiative emerges as an integral component of a pre-payment agreement pertaining to gold dore.

The Washington-endorsed reform of Venezuela's gold sector is the second substantial undertaking by acting President Delcy Rodriguez. Following the U.S.-prompted ouster of President Nicolas Maduro in January, Rodriguez implemented extensive oil reform designed to attract foreign investment. Additionally, permission was extended by the U.S. in March to facilitate purchases of gold from Minerven.

The plan allows Venezuela's gold, previously finding its way to Middle Eastern and African markets, to reach U.S. shores for refining. The aim is to gradually elevate Venezuela's official mining standards to gain acceptance in global markets. This is anticipated to be a protracted process, as noted by a source involved in the Trafigura deal.

(With inputs from agencies.)