More Than Oil: Venezuela’s “Blue Gold” Draws US Attention

While U.S. companies may soon gain access to Venezuela’s vast oil reserves, it’s not only petroleum that has captured Washington’s attention. 

The South American nation is believed to hold significant quantities of critical minerals and rare earth elements, essential for industries ranging from defense to advanced technology, materials that U.S. officials repeatedly cite as vital for national security, according to CNN Bustiness. 

Experts warn that exploiting Venezuela’s mineral wealth is far from straightforward. The country’s geological data is incomplete, its mining infrastructure underdeveloped, and many resource-rich areas are controlled by armed groups and illegal miners. Environmental concerns also loom large, particularly for energy-intensive rare earth mining.

Red Blackmore, Research Director at the Atlantic Council’s Global Energy Center, noted: “There is awareness within the administration that Venezuela possesses a broader spectrum of natural resources beyond oil. But the conditions for extracting and bringing these minerals to market are far more complicated, arguably more complex than the oil sector itself.”

Even if U.S. firms could mine Venezuela’s rare earths, processing remains a bottleneck. China currently handles over 90% of global rare earth refining, maintaining a near-monopoly through government support, industrial expansion, and lenient environmental regulations. Past trade tensions have shown how vulnerable the U.S. supply chain is to Chinese export restrictions.

Joel Dodge, Director of Industrial Policy and Economic Security at Vanderbilt Policy Accelerator, said:

“China still holds almost exclusive capability in rare earth processing. This industrial and geopolitical advantage cannot be overcome overnight.”

The U.S. Geological Survey (USGS) classifies 60 minerals as critical for economic and national security, including aluminum, cobalt, copper, lead, nickel, and 15 rare earth elements like cerium, neodymium, and samarium. These materials are key inputs for electronics, batteries, displays, and military technologies such as lasers, fighter jets, and missiles.

Although Venezuela is not officially listed by the USGS as a rare earth source, experts believe the country has deposits of coltan (tantalum and niobium), bauxite (aluminum and gallium), and other critical minerals. In 2009, former President Hugo Chávez dubbed coltan the country’s “blue gold” and claimed large reserves had been discovered.

In 2016, President Nicolás Maduro established the Orinoco Mining Arc, a vast area designated for mineral exploration and production, though it has struggled with illegal mining and poor regulatory oversight.

Song Choi, Metals and Mining Analyst at BloombergNEF, said: “Despite the country’s significant mineral potential, Venezuela faces gaps in geological data, a shortage of skilled labor, organized crime, lack of investment, and a volatile policy environment. It is unlikely to play a meaningful role in the global critical minerals sector over the next decade.”

Venezuela’s “blue gold” may thus be highly coveted, but harnessing it safely and economically remains a monumental challenge for both the country and potential foreign investors.