Venezuela established official collection centers in 2023 at Los Pijiguaos and Morichalito to consolidate strategic mineral outputs under state control. However, significant extraction occurs irregularly, with illicit mining operations managed by armed groups such as Colombia’s ELN and FARC dissidents, who transport minerals through Colombia for eventual processing in China. This underground trade fortifies China’s foothold in Venezuela, complicates U.S. national security, and undermines Venezuelan state revenue.
The imposition of U.S. sanctions, including a gradual embargo on PDVSA since the late 2010s, and the recent military crackdown signal Washington’s intent to displace adversarial influence and secure its own access to these critical resources. While U.S. rhetoric largely emphasizes petroleum interests, the underlying drive reflects a transition towards ensuring stable access to critical raw materials amid rising global competition. Venezuela’s mining sector, previously diminished by mismanagement during the chavista era, possesses latent capacity for rapid revival if governance improves, offering potential leverage in global supply chains for iron, bauxite, gold, and strategically pivotal minerals like coltán and rare earths.
This article was curated and published as part of our South American energy market coverage.
