A surge in illegal gold mining in Venezuela is fueling widespread human rights abuses, environmental damage, and the financing of criminal and terrorist organizations, according to multiple recent reports. Children as young as 10 are being forced to labor in mines, while girls as young as 12 are reportedly coerced into prostitution. Entire communities have been displaced due to violent cartel activity linked to the illicit gold trade.

Venezuela has emerged as a central hub in a growing illicit gold-mining rush that benefits powerful criminal groups including the Tren de Aragua cartel and terrorist organizations like Hezbollah. These groups generate an estimated $10 to $12 billion annually from illegal gold mining and trading, taking advantage of Venezuela’s vast, lawless jungles and corruption within government ranks. Gold from Venezuela, as well as from neighboring Colombia, Bolivia, Peru, and Brazil, is often smuggled into international markets, with some reportedly even finding their way into coins produced by the United States Mint.

The rise in illegal gold mining coincides with record-high gold prices, which reached approximately $5,400 per ounce in January 2026, making the trade increasingly lucrative. The Jalisco Nueva Generación cartel in Mexico has played a crucial role by supplying mercury used in the extraction and refining processes. These toxic chemicals—mercury, cyanide, and arsenic—pose severe environmental hazards, contaminating water sources and harming local populations.

The Venezuelan government has been implicated in facilitating the illicit trade. Under former President Nicolás Maduro, large tracts of wilderness the size of Portugal were effectively opened to illegal mining, with reports indicating partnerships between Maduro’s regime and criminal networks controlling gold, drug, and human trafficking operations. Since Maduro’s departure, his successor Delcy Rodriguez’s administration has reportedly continued these practices. Instances of cartel-linked individuals ascending to positions of power within military intelligence have further entrenched criminal influence. One such figure has used illicit gold profits to acquire commercial assets in Florida through shell companies.

The illicit gold trade has also been linked to international sanctions evasion, including support for Iran’s illicit oil sales and money laundering networks routed through Turkey. Efforts to disrupt these financial flows have been complicated by a recent Venezuelan law increasing opacity around gold mining operations and contracts, which critics say facilitates continued criminal activity.

While the U.S. Treasury Department created a sanctions exception for Venezuelan gold transactions earlier this year, the predominance of illegal mining—accounting for more than 90% of the country’s gold production—raises significant concerns over inadvertent support for terrorist groups and cartels. Experts emphasize the need for enhanced oversight, including the appointment of an inspector general to conduct audits and monitor transactions on the ground.

Analysts assert that a sustainable solution to Venezuela’s illicit gold crisis will require a firm U.S. policy demanding transparency and accountability to sever financial ties between the gold trade and criminal organizations. They stress that achieving these goals is critical not only for protecting human rights and the environment but also for advancing U.S. national security objectives by reducing cartel influence and stabilizing the region.