Mining Could Help Rebuild Venezuela’s Future
The events that transpired in Caracas on January 3rd drew global attention to the future of Venezuela’s well-known hydrocarbon industry, while another strategic facet of the country´s economy has remained largely unnoticed: mining.
Historically overshadowed by the sheer scale of Venezuela’s oil-based economy, the country’s mines became an increasingly important source of revenue as sanctions closed the spigot on petrodollars during the Maduro years.
Alongside the vast reserves of hydrocarbons, the country’s privileged geological endowment covers extensive metal and mineral deposits. Concentrated largely in the Guyanese Shield in the southeast of the country, these reserves include some of the region’s largest gold reserves, extensive iron ore deposits, and a range of minerals that have been labelled as critical for the global energy transition by actors like the European Union.
Despite its vast mineral wealth, Venezuela’s mining sector remains poorly governed. Reforming it will be essential to rebuilding a stable republic.
The harsh reality is that the mining sector in Venezuela is currently a cesspool of some of the most atrocious activities conducted by the regime in the last decade, from human trafficking to international guerrillas like the Colombian Ejército de Liberación Nacional (ELN) controlling illegal mining operations that cause considerable environmental damage and serve to finance terrorist acts abroad. The fact remains that if these actors continue to be a force in the sector, the hopes of establishing a strong and robust Venezuelan economy will be slashed before they even get off the ground.
All conversations start with the regime’s establishment of the infamous Orinoco Mining Arc in 2016. This Zona de Desarrollo Estratégico Minero Nacional contains an estimated 7,000 tonnes of gold, alongside millions (literally millions) of tonnes of iron ore and bauxite, as well as dozens of other high value resources. In theory, it is managed by the State and the armed forces. In practice, investigations by Human Rights Watch, the Inter-American Commission on Human Rights, the International Crisis Group, and research projects such as SOS Orinoco consistently describe it as a criminal economy dominated by irregular armed groups, through which the Venezuelan regime captures significant revenue from gold extraction and international sales.
It’s important to mention that three important developments have happened in recent days. The first is that on March 9th 2026, the National Assembly in Venezuela approved the first draft of a new mining reform law. Supported by the Rodríguez-led executive, the bill presents the first significant set of changes to the Venezuelan mining law that has been in full effect since 1999, since the gold reform in 2015. Among the most important aspects of the bill are the extension of concessions from 20 to 30 years, the welcoming of both national and international companies to directly develop projects in Venezuela, and the introduction of an “international arbitration program”.
When the strong control of a mafia-like regime is combined with a lack of true judicial safeguards for foreign investment in the country, most of the reliable foreign investors will be scared away.
This law comes following two key visits from high-ranking Trump administration officials. Secretary of the Interior Doug Burgum had discussed Venezuela’s potential as a reliable source of strategic minerals. And previously, Secretary of Energy Chris Wright said the same about oil. Today came the announcement from Swiss commodity trading giant Trafigura, where they are committing with Minerven to help build a program for the responsible sourcing of Venezuelan gold.
Rebuilding Venezuela’s mining ecosystem will be an uphill battle that will require more than a few high-level visits, a tenuous attempt at legal reform, or a single agreement from a renowned international trader. The shadow mining economy is a key issue in the consolidation of a future Venezuelan republic that aims towards a stable political and economic development. This will in turn place some pressure on Delcy Rodríguez and the regime’s inner circle to address a system that has been successful under their watch. Without a doubt, there’s a big question mark over their willingness to dismantle one of its main cash cows, but this should remain a key issue in discussions over Venezuela’s future.
But just cleansing the system is not nearly enough to revitalize the sector. Because for Venezuela to become a key exporter of gold, iron and critical materials, international standards must be adopted. That is why Venezuela must create a true pathway for foreign investment to become an engine for the sector. One of the main concerns is just how much control the state exerts over the mining system, which can be argued to be even larger than the one seen in the energy industry. Three key State-owned companies “officially” control most of the mining operations in Venezuela: Corporación Venezolana de Minería (CVM), Corporación Venezolana de Guayana (CVG) and Minerven.
The problem is not the fact that State-owned companies operate in the country, but rather that the State that operates them is basically a criminal organization. When the strong control of a mafia-like regime is combined with a lack of true judicial safeguards for foreign investment in the country, most of the reliable foreign investors will be scared away. The ones who can start to create pathways to reintroduce Venezuela into the broader global economy, and transform the country into a crucial source of minerals.
The main reason why foreign direct investment must drive the growth patterns is due to the fact that international operators can bring much needed expertise and technical know-how to develop stable mining projects across the region. It is important to note that for Venezuela to eventually meet high operational, environmental and safety standards, some time must pass. Many of these international companies have vast experience operating in less than ideal scenarios in countries like Angola or the Democratic Republic of the Congo, and they have managed to meet the minimum benchmarks to sell on Western markets. Thinking that in only a couple of years Venezuela will meet the same standards as minerals sourced from Europe, Canada or Australia is plain wishful thinking. For the industry to take off, production should start, as soon as viable, and as soon as a realistic negotiation and hopefully a government change can happen.
In this vein, the main Western drivers of foreign investment into mining globally, Canada and Australia, have adopted strict technical instruments like the NI 43-101 and JORC following mining scandals like BRE-X in the late 1990s. These frameworks are meant to prove the reliability standards to even invest in mining companies both locally and abroad. These regulations, which are widely accepted interchangeably worldwide, have created considerable scrutiny for the international mining sector, and the ones who can reliably bring these instruments into Venezuela are Western actors who have included them into their internal practices. If international actors bring these in, they can become a major first step in establishing the global standards required for projects in Venezuela. An important facet of this scenario is how retribution for past seizures of assets from companies like Crystallex International and Rusoro Mining will factor into the negotiations into the future of the Venezuelan mining industry.
The Venezuelan armed forces must commit to cooperating with international companies, switch their allegiances, and start a pushback against the criminal structures across the territory.
Thinking that high international standards will be adopted quickly might be too idealistic, but future negotiations in the country should include three key elements. First, territorial control must eventually be regained. Waiting to purge the Arco Minero before starting full production would be unrealistic, as it will require a comprehensive, and time-consuming security strategy. In this case, and considering that international investors will most likely bring in their own private security, there should be a commitment from the high command of the Venezuelan armed forces to cooperate with these companies, switch their allegiances, and start a pushback against the criminal structures across the territory.
Furthermore, international observers should be welcomed into the country with open arms to provide both expertise and external oversight with a true “punitive” capacity to ensure the transparency of the process. While this is happening, the third standard will come naturally, which is the systematic integration of international compliance levels.
These two steps can eventually lead future governments in the country to invest in the creation of internal independent agencies that oversee the entire process, which will hopefully be embedded into the broader State apparatus that will be revamped in the coming years.
The reality is that the current situation in Venezuela presents an interesting path towards the reactivation of the mining industry. The sector will be crucial, and the road to restart will be long. As more than a compromise between an unreliable government partner in Delcy Rodríguez and her cadre of officials, and the global hegemon, the industry is in desperate need of foreign investment and a firm commitment from international operators to start implementing the world-class standards. Because eventually, these players will be the ones to push for the creation of viable frameworks during the rebuilding of the Venezuelan Republic.





