GL-55A

Summary

General License No. 55A authorizes transactions otherwise prohibited under the Venezuela Sanctions Regulations (31 CFR part 591) that relate to negotiating and entering into contingent contracts for new investment in Venezuela's coal or minerals sectors, including the gold sector. Authorized parties may engage with the Government of Venezuela, Carbones del Zulia S.A., Minerven, and Minerven-majority-owned entities. Contract performance remains prohibited unless separately authorized by OFAC. The license does not authorize transactions involving persons located in Russia, Iran, North Korea, Cuba, or China, nor does it unblock blocked property or authorize transactions involving blocked vessels.

Authorized activities

• Negotiating contingent contracts for new investment in Venezuela's coal or minerals sectors, including the gold sector
• Entering into contingent contracts (including executory contracts, pro forma invoices, agreements in principle, bids/proposals, and binding MOUs)
• New exploration, development, mining, extraction, processing, refining, or production activities in Venezuela's coal or minerals sectors
• Expanding existing operations in Venezuela's coal or minerals sectors
• Forming new joint ventures or other entities in Venezuela related to coal or minerals activities
• Conducting commercial, legal, technical, safety, and environmental due diligence and assessments as prefatory steps

Conditions

Any contract entered into must be made expressly contingent upon separate authorization from OFAC before performance. Transactions involving persons located in the Russian Federation, Islamic Republic of Iran, Democratic People's Republic of Korea, Republic of Cuba, or People's Republic of China, or entities owned, controlled by, or in a joint venture with such persons, are excluded. The unblocking of property blocked under the VSR and transactions involving blocked vessels are also excluded. Compliance with other Federal agency requirements, including the Department of Commerce's Bureau of Industry and Security, is still required.