On March 27, 2026, the US Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) significantly expanded the scope of authorizations available for the Venezuelan minerals sector by amending an existing general license and issuing two new general licenses covering a broad range of mining operations in Venezuela involving the Government of Venezuela (“GOV”) and CVG Compania General de Mineria de Venezuela CA (“Minerven”), or any entity in which Minerven owns, directly or indirectly, a 50 percent or greater interest (collectively, “Minerven Entities”). These actions mirror the trajectory that OFAC has taken with respect to the oil, gas, and petrochemical sectors where general licenses (“GLs”) started narrowly and were progressively broadened. As discussed below, the three new or amended GLs widen the scope of authorized minerals-related activities beyond gold to the minerals sector in general and include trading activities, as well as upstream supply of goods and services as well as negotiation of contingent investment contracts in the sector.
On March 31, OFAC also issued new guidance in the form of a Frequently Asked Question (“FAQ”) regarding the secondary sanctions risks for non-US persons who intend to engage in transactions covered by the new GLs.
Amended General License 51A
GL 51A replaces and supersedes GL 51 to expand the scope of authorized trading activities from Venezuelan-origin gold to Venezuelan-origin minerals more generally. This means that the authorization now covers the exportation, sale, supply, storage, purchase, delivery, or transportation of all Venezuelan-origin minerals, not just gold, by an established US entity (i.e., an entity organized under US law on or before January 29, 2025). Exploration, development, mining, extraction, processing, refining, or production of minerals in Venezuela or the formation of joint ventures or other entities in Venezuela to engage in the foregoing activities are not permitted under GL 51A (but see new General License 54 below). GL 51A clarifies that the processing or refining of Venezuelan-origin minerals are authorized outside of Venezuela, except in Russia, Iran, North Korea, Cuba, or China. Reliance on GL51A remains subject to the same conditions as the predecessor, GL51 (discussed in our blog post here), including that contracts must be subject to US law and dispute resolution, etc. and subject to reporting obligations.
New General License 54
New GL 54 authorizes all transactions involving the GOV, Minerven, and Minerven Entities that are ordinarily incident and necessary to the provision from the United States or by a US person of goods, technology, software, or services for the exploration, development, mining extraction, processing, refining, or production of minerals, including gold, in Venezuela.
GL 54 appears to address the gap left by GL 51 (and now GL 51A), which authorized the trade in Venezuelan-origin minerals but did not authorize the provision of equipment, technology, or services needed for upstream minerals exploration, mining, or production operations within Venezuela.
Like GL51A and other recently issued Venezuela GLs, GL 54 contains certain reporting requirements and restrictions, including, but not limited to:
- Requirements related to contractual safeguards, payment terms, and reporting requirements, which are similar to those in GL 51A (but note that GL 54 prohibits debt swaps or payments in gold whereas GL 51A prohibits debt swaps or in‑kind payments).
- Prohibition on transactions involving persons or joint ventures located in Russia, Iran, North Korea, Cuba, or China.
- Prohibition on the formation of new joint ventures or other entities in Venezuela to explore, develop, mine extract, process, refine, or produce minerals including gold.
New General License 55
New GL 55 authorizes the negotiation of and entry into contingent contracts for certain investments in Venezuela’s minerals sector, which mirrors the approach of GL 49A that authorizes the negotiation and signing of contingent contracts for new oil and gas investments in Venezuela. Similar to 49A, GL 55 does not authorize the actual performance of such contracts, which must be made expressly contingent on obtaining separate authorization from OFAC.
GL 55 can be relied upon to negotiate and enter into contingent contracts for new investments in Venezuela’s minerals sector, including activities such as minerals exploration, development, production, and the formation of new joint ventures or other entities in Venezuela related to such activities with the GOV, Minerven, and Minerven Entities. GL 55 authorizes prefatory steps for the aforementioned activities, such as conducting commercial, legal, technical, safety, and environmental due diligence and assessments.
Like the other new Venezuela GLs, GL 55 does not authorize any involvement in activities with Russia, Iran, North Korea, Cuba, and China or any blocked vessels.
New OFAC FAQ 1247 – Secondary Sanctions Risk Clarification
OFAC clarified in FAQ 1247 that non-US persons engaging in Venezuela related oil and mineral transactions that are authorized under GL 46B, GL 51A, and GL 52 do not face secondary sanctions risks provided that non-US persons comply with “certain” conditions and prohibitions outlined in the GLs. Notably, FAQ 1247 does not reference a requirement for non-US persons to include US governing law or US dispute resolution provisions in their contracts in order to avoid US secondary sanctions risks, although it does require that non-US persons must be organized under the laws of a third country on or before January 29, 2025 i.e., similar to “established US entities” authorized under those GLs. OFAC explains that non-US persons who continue to transact with PdVSA or import Venezuelan-origin oil, petrochemical products, and minerals, including gold, without complying with those conditions in the GLs, risk being designated themselves. Such transactions include, for example, providing financial, material, or technological support to blocked persons, being responsible for or complicit in a transaction involving deceptive practices or corruption and the GOV, or operating in the gold or oil sectors of the Venezuelan economy. This clarification is significant because it directly addresses lingering market uncertainty about the sanctions risk for foreign companies operating in Venezuela who are generally outside US sanctions jurisdiction as non-US persons.
