Venezuela Courts Global Miners, but Armed Groups and Violence Raise Major Risks

After two decades of largely illegal mining, Venezuela is pushing to attract foreign investors to develop its gold, iron, and bauxite resources. The effort, backed by the Trump administration, follows a new mining law passed in April allowing private and foreign firms to operate. The move comes as the country seeks new income after years of economic crisis marked by hyperinflation, sanctions, weak oil infrastructure, and corruption. However, serious risks remain. Local sources say armed groups control mines, enforce rules, and use violence, with Colombian rebels and criminal gangs active in Bolivar state. A 2022 U.N. report cited killings, exploitation, and military involvement. Despite government promises of security, many doubt real investment can happen without major improvements, warning the region remains dangerous and unstable.