Rights and Environmental Groups Say Venezuela Mining Bill Could Pull U.S. Firms Into 'Blood Gold' Economy

A coalition of Venezuelan civil society, Human Rights and environmental groups is warning that a proposed mining law could draw U.S. companies into a system linked to illegal extraction, environmental damage and armed control of mineral-rich regions.

In a joint statement, organizations said the draft legislation under debate would "institutionalize ecocide" and enable the laundering of "blood gold" as Venezuela opens its mining sector to foreign investment.

The warning comes amid a political transition following the Jan. 3 capture of Nicolás Maduro, which has led to closer coordination between Washington and Venezuela's remaining leadership. Venezuela's state-owned mining company, Minerven, recently signed a deal to supply between 650 and 1,000 kilograms of gold to commodities trader Trafigura for delivery to U.S. refineries under a government-backed arrangement, marking one of the first such transactions between the two countries in years.

In the statement, the groups said the law, currently being discussed in Venezuela Nationals Assembly, would "provide a veneer of legality to the ongoing systematic plundering of the Amazon and the Guiana Shield," rather than strengthening oversight. They say the proposal advances in a context of "systematic violations of social and environmental rights" and weak institutional safeguards.

Environmental damage linked to mining is already extensive. According to figures provided by SOS Orinoco and published by The Miami Herald, mining has affected more than 2.7 million acres between 2000 and 2024, with projections exceeding 3.7 million acres by 2030. The expansion traces in part to the creation of the Orinoco Mining Arc in 2015, which triggered a surge in both legal and illegal extraction.

The coalition highlighted the absence of mandatory environmental impact assessments, independent monitoring and remediation mechanisms, as well as limited protections for Indigenous communities. The groups also rejected the bill's reference to "Ecological Mining Development," calling it misleading. "Gold mining is intrinsically destructive," they said, adding that the concept obscures damage to biodiversity and water systems.

They urged lawmakers to suspend debate and adopt stronger transparency, environmental and human rights protections. "Venezuela's gold is not worth the life of our rivers, forests and communities," the statement said.

Making matters more dire, analysts say guerrilla groups such as the National Liberation Army (ELN) and dissident factions of Colombia's former FARC maintain influence across large parts of southern Venezuela, reportedly taxing production and operating alongside elements of state security forces. "The guerrillas control everything," a miner told The Wall Street Journal in February, while experts note that gold is "extremely easy to launder."