Mercuria Energy Group Ltd. and Glencore Plc, prominent commodity traders, are reportedly vying for agreements involving Venalum, Venezuela's largest aluminum smelter. These negotiations are seen as a significant move by major traders into Venezuela's struggling industrial sector. Both companies are engaged in separate discussions with the Venezuelan government regarding a deal for the Venalum facility, located in Bolívar state, which has the capacity to produce approximately 430,000 tons of primary aluminum annually.
Mercuria is collaborating with private mining investment firm Heeney Capital on these discussions. Mercuria and Heeney Capital have previously finalized several agreements to acquire Venezuelan bulk commodities and metals, including gold, with deals announced in May 2026 valued at around $2.2 billion annually. They are also actively pursuing further deals for Venezuelan aluminum, nickel, and iron products. For Glencore, such an agreement would mark its return to Venezuela, where it had commercial ties with the state-owned aluminum sector over two decades ago and later provided financing to producers.
The potential entry of these international operators coincides with increasing Western interest in Venezuela's vast mineral and oil resources following a change in leadership. The discussions are exploring various options for operating the Venalum plant and securing access to the aluminum it produces. Although no definitive agreement has been reached, and negotiations could still falter, the interest from these major traders comes at a favorable time for the aluminum market. Prices have risen by approximately 9% this year due to supply constraints from Middle East production disruptions and China's aluminum industry operating near its government-imposed capacity limits.
