Glencore, Peabody and Heeney mull coal deals in Venezuela

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeMiningGlencore, Peabody and Heeney mull coal deals in VenezuelaReviving Venezuela’s coal industry would require vast investments in new equipment and infrastructureAuthor of the article:James Attwood and Fabiola ZerpaThe talks between Venezuela and the companies have focused on operational control and off-take rights rather than outright ownership of the coal mines. Photo by VisMedia via Bloomberg/Getty ImagesGlencore PLC, Peabody Energy Corp. and Heeney Capital are weighing deals to produce coal in Venezuela as the Trump administration’s push for United States-allied companies to develop the nation’s resources extends beyond oil.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountGlencore and Peabody are working together on a possible bid for assets in Venezuela’s Zulia state, the heart of the nation’s coal sector, according to people familiar with the matter.This advertisement has not loaded yet, but your article continues below.Heeney, a New York investment firm, is working with Alabama-based miner Drummond Co. on a separate potential bid for assets in Zulia, said the people who asked not to be identified because the talks are private. Drummond sent representatives last month to the region, the people said.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againSwiss-based Glencore, St Louis-based Peabody and Drummond declined to comment. Heeney, Venezuela’s information ministry and the country’s state coal company, Carbones del Zulia SA, didn’t immediately respond.Venezuela, home to some of the world’s largest crude reserves, has about 730 million metric tons of coal reserves, among the largest in South America, according to the U.S. Energy Information Administration. Yet coal production has collapsed from its peak a quarter-century ago, plagued by the same type of neglect and under investment that’s gutted the country’s oil industry.The nation mined about 350,000 short tons of coal in 2024 compared with about 8.7 million in 2000, EIA data show. Officials have been trying to revive the industry, with production restarting at the Paso Diablo and Mina Norte mines in the Guasare Basin in late 2024. In early September, the U.S. Treasury eased sanctions on Venezuela’s coal sector, authorizing certain trade and services as well as negotiations for new investment in the industry.This advertisement has not loaded yet, but your article continues below.Peabody participated in a U.S. government-led mining delegation to Caracas in March. The company previously held a stake in the venture that operated the Paso Diablo mine in Guasare before Venezuela declined to renew its concession in 2013.Drummond and Glencore, meanwhile, are significant coal producers in neighbouring Colombia.The talks between Venezuela and the companies have focused on operational control and off-take rights rather than outright ownership of the mines, the people said. That’s similar to the model other minerals companies are using in the country in the wake of U.S. forces removing former leader Nicolas Máduro from power in January.Reviving Venezuela’s coal industry would require vast investments in new equipment and infrastructure. That could make it difficult for coal producers there to compete with cheaper supplies from neighboring Colombia.It’s also uncertain whether there will be enough buyers for the coal once the mines are up and running since global demand is being currently propped up by short-term supply and trade disruptions.—With assistance from Will Wade and Jacob Lorinc.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.