An examination of Venezuela's gold trade has uncovered extensive risks related to human rights abuses, environmental destruction, and the entanglement with criminal economies. The OECD highlights that since Venezuela's mining industry was nationalised in 2011, criminal activities have increasingly infiltrated the sector. Gold’s high value, portability and difficulty in tracing makes it a perfect medium for illicit finance, meaning that the mineral is a crucial target for organised crime groups throughout the country. This explains a rapid increase in illegal mining that has caused widespread deforestation and environmental damage in protected areas, including the Venezuelan Amazon. A report by the Pulitzer centre explains this, also underlining the extent to which organised crime groups, including mafias and guerillas, control these illegal operations, notably creating clandestine airstrips to export their loot to foreign countries. The environmental impact of these criminal activities is immense. Gold mining is causing hydraulic ground erosion, deforestation, and the inappropriate use of mercury, according to Mongabay. Mercury contamination has been found in the blood, hair, and tissues of local communities, causing serious health issues.
Keywords: Latin America, Venezuela, minerals, gold, primary production, trade and transport, human rights violations, environmental crime, organised crime, illegal mining, deforestation, human rights violations, gold trafficking, smuggling
Sources: https://news.mongabay.com/2016/03/gold-mining-in-venezuela-a-perfect-storm-of-illegality-deforestation-and-mafias/
https://pulitzercenter.org/how-they-did-it-uncovering-vast-network-illegal-mining-venezuela
https://mneguidelines.oecd.org/Gold-flows-from-Venezuela-supporting-due-diligence-on-the-production-and-trade-of-gold.pdf
In the Venezuelan Amazon, particularly within the states of Bolívar and Amazonas, deforestation has surged alarmingly due to illegal mining, expanded agriculture, and wildfires. Reports from 2022 highlight that over 140,000 hectares of primary forest were lost between 2016 and 2020, driven by these activities. The situation is exacerbated by the presence of Colombian guerrillas, such as the ELN, who, with alleged support from the Venezuelan government, exploit these regions for mining and agriculture, severely impacting protected areas like Caura, Canaima, and Yapacana national parks. The illegal operations include the construction of runways for drug trafficking and mineral smuggling, contributing significantly to the region’s deforestation. This criminal activity not only threatens biodiversity but also undermines the efforts of local communities engaged in sustainable agroforestry, further destabilizing the region.
Keywords: Latin America, Venezuela, minerals, gold, primary production, agriculture, illegal mining, terrorist and conflict financing, drug trafficking, human rights violations
Source: https://news.mongabay.com/2022/08/venezuelan-amazon-deforestation-expands-due-to-lawlessness-mining-fires-reports/
In Venezuela, illegal mining, particularly of gold, has led to severe environmental and social consequences, including the country’s highest deforestation rates within the Amazon basin. Between 2016 and 2020, approximately 140,000 hectares of primary forest were destroyed, driven by unregulated mining activities that also resulted in significant mercury contamination and habitat destruction. This crisis is exacerbated by the involvement of armed groups and guerrillas who control the mining operations in the Amazonas and Bolívar states, often with the tacit approval or direct involvement of corrupt elements within the Venezuelan state. These groups commit widespread human rights abuses and pose significant threats to Indigenous communities.
The Venezuelan government, under Nicolás Maduro, has been implicated in profiting from the illegal gold trade, which has become a crucial financial resource amidst the country’s economic crisis and international sanctions. Efforts by international actors and neighboring countries to curb these activities face significant challenges due to the deep integration of illegal mining within the political and economic fabric of Venezuela. The situation is further complicated by the global nature of the gold supply chain, which often sees illegally mined gold laundered through multiple countries before reaching major markets.
Keywords: Latin America, Venezuela, minerals, gold, illegal mining, illegal deforestation, environmental crime, human rights violations, gold trafficking, terrorist and conflict financing, Indigenous rights violations
Source: https://insightcrime.org/news/criminal-threats-venezuela-illegal-mining/
An InSight Crime Article reports that in Venezuela, criminal groups and state forces are colluding in widespread cattle theft, significantly linked to drug trafficking and characterised by corruption and bribery. Criminal organisations, alongside corrupt officials and military personnel, orchestrate cattle theft from ranchers, using bribery and coercion to facilitate these operations. Stolen cattle are often sold to fund drug trafficking activities, with corrupt authorities turning a blind eye or actively participating for financial gain. This illicit network exploits the country's economic instability and legal system weaknesses, creating a lucrative cycle of crime that exacerbates violence and lawlessness in rural areas. The involvement of state forces adds a layer of complexity, undermining trust in government institutions and law enforcement. Addressing this issue requires dismantling the corrupt alliances between criminals and officials, strengthening legal frameworks, and ensuring accountability to combat the intertwined issues of bribery, corruption, and drug-related crime in Venezuela’s cattle industry.
Keywords: Latin America, Venezuela, cattle, primary production, trade and transport, organised crime, drug trafficking, corruption and bribery
Source: https://insightcrime.org/news/criminal-groups-state-forces-allied-cattle-theft-venezuela/
According to an InSight crime article, illegal mining is on the rise in southern Venezuela, even as Brazil tightens its grip on the region. This increase in illegal mining activities has led to significant environmental damage, human rights abuses, and security threats for both Venezuela and the region. The situation is further complicated by the involvement of criminal groups, including gangs, Colombian guerrilla groups, and paramilitary groups, who are competing for control of the country’s valuable mineral resources, such as bauxite, coltan, diamonds, and gold. The Venezuelan government’s inability to control these illegal activities has led to irreversible damage to the environment and a humanitarian crisis among the indigenous communities affected by the mining. The situation is so dire that some are calling for the interim government to take immediate action to halt illegal mining operations, protect indigenous and local communities, and implement public health policies to mitigate the spread of diseases caused by the mining.
Keywords: Latin America, Venezuela, minerals, gold, bauxite, coltan, diamonds primary production, illegal mining, human rights violations, terrorist and conflict financing, Indigenous rights, environmental crime
Source: https://insightcrime.org/news/illegal-mining-grows-in-southern-venezuela-as-brazil-tightens-grip/
Research from NGO Verité found that up to 91% of Venezuela’s and 87% of Colombia’s gold exports are illegally produced, often controlled by organised crime groups backed by large-scale investments. Some of the world’s most active organised crime groups and non-state armed groups are reportedly directly involved in the production and sale of such illegal gold, including Mexico’s Sinaloa cartel and Italy’s ’Ndrangheta mafia, as well as Brazilian, Russian, and Chinese syndicates.
Illegally produced gold from Latin America is exported to refineries (with the help of corrupt officials), melted down and blended with legally produced and scrap gold, or mixed to make alloys, then exported to global markets. Canada and the US are the biggest importers of Latin American gold – indeed, the latter’s gold imports from Latin America exceed the volume of gold that Latin America claims to export.
Whilst Switzerland is responsible for refining around 70% of globally-produced gold, some of the county’s refineries have stopped purchasing gold from Latin American suppliers linked to illegal gold mining and human rights abuses, leaving a gap in the market which US refineries have rushed to fill, purchasing this surplus gold in Switzerland’s place and introducing it to global markets. Indeed, Verité found that 90% of the Fortune 500 companies that filed conflict mineral disclosures last year (from across telecoms, IT, car manufacturers, and machinery producers) had purchased gold from refineries linked to illegally mined gold from Latin America.
In 2022, over 320 illegal gold mines were counted in the nine states that make up Brazil’s Legal Amazon. Major drug trafficking factions, including the Primeiro Comando da Capital, have infiltrated mining operations in Indigenous territories, running protection rackets, extorting taxes, controlling pits, and forging partnerships with gangs in neighbouring Venezuela to sell contraband minerals. Gold is also the top export of Bolivia, with the mining region transecting national parks and reserves.
Keywords: Latin America, Venezuela, minerals, gold, primary production, serious organised crime, illegal mining, human rights violations, corruption and bribery, terrorist and conflict financing
Source: https://www.theguardian.com/global-development/2016/aug/16/illegal-mines-local-mafia-take-shine-off-latin-american-gold-peru