Venezuela is attempting to reintroduce international mining capital to develop its gold, iron and bauxite reserves, buoyed by support from the Trump administration and a new mining law enacted by the national assembly. But miners, residents and activists in the sprawling southeastern state of Bolivar say the presence of well-entrenched illegal prospecting networks, armed groups and accusations of military collusion create formidable obstacles to large-scale, transparent foreign investment.
Those who work and live in the region told Reuters they believe international companies would face near-impossible conditions unless significant improvements are made to security and oversight. The local informal mining sector has evolved over the past 20 years into a chaotic industry in which armed criminal organizations play decisive roles in controlling territory and 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."
At the national level, the administration of U.S. President Donald Trump has signaled support for moves by acting president Delcy Rodriguez to attract investors since she assumed power in January. The governing party-controlled national assembly, led by Jorge Rodriguez - Delcy Rodriguezamily member - passed a mining law in April that permits foreign and private companies or consortiums to extract gold and other strategic minerals.
Venezuelaaces acute fiscal and economic pressures. Its oil-centered economy has weathered hyperinflation, the loss of skilled workers, crumbling oil infrastructure and deep-rooted corruption. With Washington having removed former president Nicolas Maduro in January, the government led by Rodriguez is seeking new revenue streams to deliver on pledges to improve public services and raise wages. Mining developments are being positioned as an additional source of taxes, royalties and jobs.
U.S. Interior Secretary Doug Burgum, during a visit in March, said the new law would create investment opportunities and that Rodriguez would guarantee security for incoming companies. The United States has already issued a license permitting certain transactions involving Venezuelan-origin gold, including operations involving state-owned miner 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 an event in March.
Despite high-level assurances, the Venezuelan government has not made public specific security plans for Bolivar state. Companies that participated in Burgum elegations and subsequent discussions have received varying regulatory signals: Canada-listed Gold Reserve, which has indicated an intention to resume mining in Venezuela and joined the Burgum delegation, was granted a U.S. license permitting it 30 days to negotiate with the government. Gold Reserve did not answer questions about whether it is seeking to reclaim the Brisas mine, which the government seized in 2009.
Swiss commodities trader Trafigura is already collaborating with state miner Minerven on a recently announced responsible sourcing program and has stated that the work complies with a U.S. Treasury license. Other companies named in local press as part of the Burgum discussions - including Hartree, Peabody Energy, Ivanhoe and TechMet - did not respond to requests for comment.
For many people who live and work in the area known as the Orinoco Mining Arc - a set of four municipalities in Bolivar designated previously as strategic for mining development - talk of international mining investment feels premature. Long-standing problems around transparency in supply chains, insecurity, and the socio-environmental impact of operations, they say, must be addressed first.
An engineer who spent a decade with Minerven and asked not to be named for fear of reprisals said: "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."
The security landscape in Bolivar is complex. Sources in the state described the operations of Colombia ased National Liberation Army rebels (ELN), ex-members of the demobilized Revolutionary Armed Forces of Colombia (FARC), local criminal groups such as the Tren de Guayana and 3R, and other groups led by figures known by the aliases 'Juancho' and 'Fabio.' Residents and long-term miners say these actors have for years supplied machinery, fuel and weapons to informal operations, while also extracting gold and extorting local businesses.
"There is no way they can do that without the government omplicity and permission," said Pedro Yepez, a 61-year-old miner with two decades of experience in El Callao and Sifontes municipalities.
A community activist who has tracked human rights abuses in the area for years and spoke on condition of anonymity for safety reasons echoed claims that armed groups run the mines with governmental complicity. Other residents and local leaders told Reuters they regularly face extortion as state authorities turn a blind eye.
The Venezuelan communications ministry, which handles government media queries, did not reply to detailed questions about allegations of military complicity, concrete security strategies for Bolivar or contacts with potential investors.
Authorities launched a military initiative called Operation Roraima in 2023 aimed at combating illegal mining in Bolivar. The operation has continued in subsequent years, with military leaders publicly showcasing the destruction of illegal camps and equipment and posting images of controlled demolitions on social platforms. Yet criticism persists that military involvement has been linked to human rights violations and, in some accounts, to facilitation of illegal mining activity.
A United Nations Human Rights Council fact-finding mission, in a 2022 report, detailed allegations that both security forces and armed groups were implicated in killings, enforced disappearances and other abuses in the region. The UN mission also raised alarm about worker exploitation, child labor, human trafficking, violations of Indigenous rights and extensive environmental damage tied to mining.
International reviewers have documented rising gold flows from Venezuela since the creation of the Orinoco Mining Arc in 2016, driven mainly by informal and illegal mining activity, according to a 2021 report by the Organization for Economic Co-operation and Development. That report underscored human rights concerns, ecological harm and military collusion linked to the sector.
Local non-governmental organizations have reacted critically to the new mining legislation. In late March, 16 groups published an open letter arguing that the law would offer "a veneer of legality" to "severe environmental degradation and ongoing human rights violations," and voiced fears over continued military control of mining zones. "Military presence in mines has historically been associated with human rights violations, corruption and the creation of hybrid governance structures," the letter stated.
Even were international companies to establish operations in Bolivar, community leaders and activists say substantial social risks would remain. They worry about the future of small-scale and informal miners who currently derive livelihoods from local deposits, and about heightened dangers to Indigenous communities 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, warning that Indigenous populations could face particular vulnerabilities.
A veteran Bolivar geologist with over 40 years in the sector warned that displacing the tens of thousands of informal miners and the criminal networks that profit from extortion and illicit trade would be difficult. "This won e simple," he said.
For investors and policymakers assessing Venezuela s a potential mining jurisdiction, the gap between formal legal openings and on-the-ground realities in Bolivar is substantial. The government has taken steps to signal openness and legal frameworks that permit foreign involvement, and the United States has granted licenses enabling certain transactions. But miners, residents and rights monitors stress that security, supply-chain transparency and protections for communities and the environment will need concrete remedies before international capital can safely and legitimately scale mining operations in the region.
Summary
Venezuela nd its acting leadership are actively courting foreign mining investment, backed by support from the Trump administration and a new mining law permitting private and foreign extraction of strategic minerals. Yet miners, community activists and local residents in Bolivar warn that entrenched armed groups, allegations of military complicity, extensive informal mining and severe social and environmental harms make significant international investment unlikely without major reforms to security, oversight and supply-chain transparency.
Key points
- New law and U.S. engagement: The national assembly passed a mining law in April that allows foreign and private companies to extract gold and strategic minerals; the Trump administration and U.S. officials have expressed support and issued licenses enabling certain gold transactions.
- Security and governance challenges: Residents and miners report that criminal syndicates, Colombian rebel groups and armed gangs exert control over mines, creating high-risk conditions for investors and local communities.
- Social and environmental concerns: UN and OECD reports, along with local NGOs, document rights abuses, child labor, environmental destruction and fears that the law could legalize ongoing harms if military control and transparency issues are not addressed.
Risks and uncertainties
- Security risk - mining and related investment: Active presence of armed groups, alleged collusion between security forces and illegal operators, and widespread extortion increase operational risks for firms and threaten worker safety.
- Reputational and compliance risk - miners and traders: Allegations of human rights abuses, environmental degradation, and weak supply-chain transparency create potential legal and reputational exposures for international companies and traders operating in or sourcing from the region.
- Social displacement and community impact - Indigenous and local economies: Formalization of large-scale operations could displace tens of thousands of informal miners and negatively affect Indigenous communities, heightening social conflict and undermining local livelihoods.