Venezuela’s Minerals: From Gold, Bauxite to Coltan and Iron Ore

Venezuela is best known for its vast oil and natural gas wealth, but beneath its troubled economy lies another, less visible source of power, such as minerals. 

From gold and bauxite to coltan and iron ore, the country’s mineral resources, concentrated largely in the Orinoco Mining Arc, have become a central, if quieter, front in the escalating geopolitical confrontation between Caracas and Washington.

Global attention has returned sharply to Venezuela following a sweeping U.S. action against Caracas that resulted in the arrest of President Nicolás Maduro and his removal from the country, triggering a political vacuum. While oil has dominated headlines, analysts argue that minerals are an equally critical, and often overlooked, dimension of the conflict.

In 2016, amid crippling international sanctions and a collapsing oil sector, Venezuela sought alternative revenue streams by establishing the Orinoco Mining Arc through a presidential decree. The move was intended to unlock non-oil wealth, but it immediately drew U.S. opposition. Washington accused Caracas of operating an opaque and illegal mining system that fuels environmental destruction, corruption, and organized crime.

Covering roughly 12% of Venezuela’s territory, the Orinoco Mining Arc is officially claimed to hold around 7,000 tonnes of gold, potentially the largest reserve in the world, along with an estimated 33.8 million tonnes of diamonds, 3.6 million tonnes of iron ore, 200 million tonnes of bauxite, and more than 40 minerals of high industrial value. The region lies north of Bolívar state and south of the vital Orinoco oil belt, within the ancient Guiana Shield, one of the oldest geological formations on Earth.

A U.S. State Department report submitted to Congress in June 2025 estimated that actual gold extracted from the Orinoco Arc averaged about $2.2 billion annually over the past five years, while acknowledging that precise figures, and even geological reserve data, are difficult to verify.

According to U.S. assessments, the Orinoco Arc has evolved into a hub for illegal mining and cross-border smuggling networks extending into Brazil, Colombia, and Guyana, rather than a regulated mining industry. These allegations sit at the core of Washington’s criticism.

Beyond the U.S.-Venezuela standoff, Russia has emerged as a key investor in the region. The Venezuelan government has announced large-scale foreign investments in Orinoco mining projects, with Russian companies playing a prominent role, adding another geopolitical layer to the conflict.

China, however, may be the most significant underlying concern for Washington. While U.S. pressure on Venezuela is often framed as an oil issue, research by Rare Earth Exchanges suggests a broader strategy aimed at limiting China’s access to strategic resources. The Orinoco Arc reportedly supplies coltan, gold, iron ore, and bauxite through informal networks, with materials frequently ending up in Chinese processing facilities.

China dominates global processing for many critical minerals, and analysts argue that U.S. sanctions have pushed these flows underground rather than stopping them. The result is a chaotic mining sector deeply intertwined with illicit trade, one that continues to operate despite, and sometimes because of, international pressure.