Beyond Oil And Gold: Venezuela Readies First US Aluminum Shipment In Years As Resource Race Heats Up

Venezuela is emerging as a source of energy and critical materials for the US as the Trump administration expands sourcing channels within the Western Hemisphere. Existing crude trade and a gold supply agreement with Caracas are being paired with efforts to develop broader industrial metal ties, including potential access to nickel and iron ore. That expansion may now include aluminum.

Bloomberg reports 15,000 metric tons of aluminum produced by state-owned Venalum could depart Venezuela by the end of the week under a deal involving Mercuria Energy Group and Heeney. 

US officials could announce the deal earlier this week during the G20 energy summit in Houston. Folks familiar with the shipment say it is worth nearly $50 million and would be modest relative to US consumption. 

The outlet previously reported that Mercuria and New York-based mining investment firm Heeney are in discussions with Venezuelan authorities to operate the Venalum smelter that was built in the 1970s with annual capacity of 430,000 tons. 

Years of underinvestment and power outages left the Orinoco River complex operating at a fraction of that level but new investments could revitalize the smelting plant. 

The 15,000-ton Venezuelan cargo equals roughly .4% of that annual import requirement. It would provide modest relief and another sourcing channel for the US when the domestic market is already tight. 

Beyond aluminum, the US Energy Under Secretary Kyle Haustveit said last month that US refineries were receiving more than 500,000 barrels per day of Venezuelan crude. There was a report earlier this year that State-owned Minerven agreed to supply US with 650 to 1,000 kilograms of gold dore bars to Trafigura for US markets. Washington is also seeking access to critical material markets in the country, such as niobium and tantalum. 

The Trump administration’s stated strategy links greater US influence in the Western Hemisphere with secure access to critical resources and supply chains. Its new relations with Venezuela’s energy and mining sectors reflect just that. Developing those resources will require substantial investment in production, processing, and infrastructure. 

Building a stable South America really began with ridding the continent of pro-China socialist regimes. Brazil’s presidential election next month could cement a generational rightward shift.