Venezuela is making a renewed push to bring international mining companies back to develop its mineral wealth, but the effort faces significant obstacles from criminal organizations that have taken control of mining operations over the past two decades.
The South American nation’s government has gained support from the Trump administration for its initiative to draw foreign investment to extract gold, iron and bauxite deposits. However, nine local miners, residents and community advocates interviewed by Reuters expressed doubt that international firms can make meaningful investments without substantial security improvements in Bolivar state.
Local sources report that criminal organizations operate alongside Colombian rebel groups in the region, while government security forces have been accused of working with criminals to support illegal gold mining operations.
“The (crime) syndicates control the mines. They’re the ones who set the rules and enforce the law in many of the mines where we work. Depending on the situation, they impose punishments and can be very violent,” said Ines Garcia, a 51-year-old informal miner in El Callao municipality. “You look after yourself, because even talking is a risk.”
The Trump administration has endorsed efforts by Venezuela’s acting president, Delcy Rodriguez, to draw investors since she assumed power in January. This includes backing for mining legislation approved in April by the ruling party-controlled national assembly, led by Rodriguez’s brother Jorge. The new law permits foreign and private companies to form partnerships for extracting gold and strategic minerals.
Venezuela’s economy, heavily reliant on oil, has suffered for years from extreme inflation, widespread emigration of skilled workers, international sanctions, crumbling oil infrastructure and widespread corruption. The country urgently needs revenue to finance Rodriguez’s commitments to enhance public services and increase wages after Washington ousted former president Nicolas Maduro in January. Mining investments could provide additional sources of tax revenue, royalties and jobs.
During a March visit, U.S. Interior Secretary Doug Burgum stated the legislation would create business opportunities and that Rodriguez would guarantee company security. The United States has already issued permits authorizing specific transactions involving Venezuelan gold, including deals with state-owned mining firm Minerven.
“You have guarantees, you have legal certainty, political security, stability and peace of mind so your investments can be developed fully — not only in the hydrocarbons sector, where there are many opportunities, but also in the mining sector,” Rodriguez told visiting investors at a March event. The government has not disclosed specifics about its security strategy for Bolivar.
Canadian-listed Gold Reserve, which has announced plans to restart mining operations in Venezuela and participated in the Burgum delegation, subsequently received a U.S. license providing 30 days to negotiate with the government. Gold Reserve did not respond to Reuters inquiries about whether it was pursuing the return of its Brisas mine, which the government seized in 2009.
Swiss commodities trader Trafigura is already collaborating with Venezuela’s state gold mining company Minerven on a responsible sourcing initiative announced last month, stating the work complies with U.S. Treasury licensing requirements. Mining firms Hartree, Peabody Energy, Ivanhoe and TechMet, identified in local media as part of the Burgum delegation, did not respond to Reuters questions.
While many international mining companies have extensive experience handling security challenges, residents and workers in the Orinoco Mining Arc—four municipalities in Bolivar designated by Rodriguez’s predecessor for mining development—view corporate interest as premature.
“For real investment to take place it is essential to resolve supply-chain transparency, security — because this is a hot zone with armed groups present — and oversight of the socio-environmental impact of operations,” said an engineer who worked for Minerven for a decade and requested anonymity due to fear of retaliation.
According to sources, Colombia’s National Liberation Army (ELN) rebels and former members of the disbanded Revolutionary Armed Forces of Colombia (FARC) operate in Bolivar, along with local criminal organizations including Tren de Guayana and 3R, plus unnamed groups led by individuals known as ‘Juancho’ and ‘Fabio.’
Criminal networks have provided mining equipment, fuel and weapons in the area while extracting gold for years, according to Pedro Yepez, 61, who has worked in mining in El Callao and Sifontes municipalities for two decades. “There is no way they can do that without the government’s complicity and permission,” he said.
A community activist who has documented human rights abuses in the area for decades and requested anonymity for safety reasons confirmed that armed groups control mining operations with government complicity. Other residents and community leaders shared similar concerns, with several telling Reuters that criminals routinely extort businesses while authorities ignore the situation.
Venezuela’s communications ministry, which manages all government press inquiries, did not respond to detailed questions about allegations of military complicity, regional security plans or investor contacts.
The military’s ‘Operation Roraima,’ designed to combat illegal mining in Bolivar, launched in 2023 and has continued since, with senior officials publicly showcasing the destruction of illegal mining camps and equipment through social media posts featuring controlled explosions.
The U.S. Department of the Interior did not respond to detailed questions regarding regional security concerns.
A 2022 UN Human Rights Council fact-finding mission report accused both military forces and armed groups of involvement in killings and disappearances, along with other rights violations in the region. The report also expressed serious concern about worker exploitation, child labor, human trafficking, Indigenous rights violations and environmental damage.
The Organization for Economic Co-operation and Development noted in a separate 2021 report that gold exports from Venezuela have steadily increased since Maduro established the Arc in 2016, driven mainly by informal and illegal mining. The report highlighted human rights abuses, environmental destruction and military collaboration with armed groups connected to the industry.
Sixteen local non-governmental organizations criticized the new mining law in an open letter published in late March, arguing it would provide “a veneer of legality” to “severe environmental degradation and ongoing human rights violations.” They expressed particular concern about continued military oversight.
“Military presence in mines has historically been associated with human rights violations, corruption and the creation of hybrid governance structures,” the letter stated.
Even if foreign mining companies successfully established operations in Bolivar, some activists and residents remain concerned about community impacts and what international presence would mean for small-scale and informal miners, including Indigenous groups in the region.
“You have to put the term ‘benefit’ in quotation marks — who benefits? Because the same state that negotiates and seeks investors forgets all the problems that exist,” said Italo Pizarro, an activist from Sifontes municipality, who warned that Indigenous communities could face particular risks.
A Bolivar geologist with over 40 years of industry experience said removing tens of thousands of informal miners working in the region, along with criminals who profit from extortion, would be challenging: “This won’t be simple.”
