The focus on Venezuela has historically been associated with its oil reserves – the largest in the world – and, since January 2026, the Venezuelan oil sector has received significant attention as the country opens up to foreign investment. While the US has loosened related sanctions enforcement for oil companies, risks in the Venezuelan oil sector remain, primarily as it relates to corruption and organized crime, as reported in our March 2026 article.
Even when not operating in the oil sector, however, foreign companies entering or re-entering Venezuela must consider that the existing risks and liabilities of the oil sector transcend into other areas of the Venezuelan economy, leaving foreign companies similarly exposed regardless of the sector they operate in. While the industries receiving foreign investment may change, many of the same, or equally relevant, risks remain. This is the case for the mining sector, for example.
As reported by The New York Times, the Venezuelan Legislature passed a new law, the Ley Orgánica de Minas, to modernize the country's mining sector and open the industry to private investment. The new law, if ratified by Venezuelan Acting President Delcy Rodríguez, will repeal a 1999 mining law and 2015 decree that oversaw the mining industry in the country.
Venezuela is believed to have a "mineral fortune that remains largely untapped" with resources like gold and the largely-demanded and sought-after rare earth minerals. Market researchers believe that, if the new law is ratified, formalizing the Venezuela mining sector "could generate at least $8 billion in annual revenue by 2036." Undoubtedly, the industry presents large opportunities to private investors. Nonetheless, as with the oil sector, foreign investors in the Venezuelan mining industry face significant risks.
Among these risks, The New York Times writes that mining operations are not controlled by the official Venezuelan government and have instead been controlled by "entrenched gangs, guerrilla groups and corrupt military officials." Other risks that private investors face include forced labor, bribes to government officials, and environmental crimes.
Further, while the law intends to grant mining licenses to companies for up to 30 years, companies that previously had operations in Venezuela remember how then-President Hugo Chávez expropriated mining assets from American and Canadian companies, many of which are still attempting to resolve related contractual disputes. With this in mind, the new law appears to open mediation and arbitration as forums to discuss contractual mining disputes moving forward, and overthrow previous legislation that "banned such arbitration, required all gold sales to be made to Venezuela’s central bank rather than directly to international markets, and required private companies to partner with state entities." The New York Times reported that “some experts cautioned that the language around arbitration was vague, leaving it unclear if disputes could be settled in international venues.”
If the law is ratified, foreign companies that consider entering or returning to the Venezuelan mining industry will be faced with physical, reputational, legal and criminal risks, all of which must be closely examined. As Venezuela re-opens to foreign and private investment, it remains a high-risk and largely complex environment to conduct business. Regardless of the industry, whether it is mining, oil or a third sector, thorough investigative diligence should be top of mind for private foreign investors in Venezuela, expanding diligence beyond direct partners and intermediaries and considering beneficial ownership structure, supply chain and exposure to criminal and political activities.
But the ambitions to attract investors are bound to clash with the perilous reality in Venezuela’s mining regions. Entrenched gangs, guerrilla groups and corrupt military officials control many mining operations. The stranglehold is often maintained with the forced labor of Indigenous people and kickbacks to Venezuelan officials, according to experts.
https://www.nytimes.com/2026/04/09/world/americas/venezuela-mining-us.html
