Venezuela’s new gold rush goes “Trump’s pace,” but ignores the $25 million question

On his 13th birthday, a Venezuelan socialist hero died Hugo Chavez and two months after the Jan. 3 from the US who captured Nicolas Madurothe incident in Caracas looks remarkably different from the rhetoric against US-imperialism that founded Chavismo and was echoed by his successor.

On the ground, a new era marked by the promise of gold, mining of precious minerals and oil drilling is rapidly beginning. Dozens of oil and mining executives, invited by the White House and warmly welcomed by Venezuela’s interim government, have packed hotels recommended by the United States Embassy in Caracas and are on a tour of Venezuela’s vast resource potential.

The US State Department and the Bolivarian Republic of Venezuela jointly announced on Thursday the restoration of diplomatic relations, which were severed in 2019 under President Trump. The statements promise that the move will “facilitate joint efforts to promote stability, support economic recovery, and advance political reconciliation in Venezuela.” Caracas expressed confidence that the process “will contribute to strengthening understanding and opening opportunities for good relations and shared benefits.”

U.S. Secretary of the Interior Doug Burgum wrapped up a two-day visit to Caracas on Thursday, saying, “We just came out of two days of meetings that were incredibly positive and positive. We had a lot of companies here from the United States that were interested in investing in Venezuela, coming back to Venezuela.”

Burgum thanked “Madam President” Delcy Rodríguez and his brother, Dr. Jorge Rodríguez, the president of the National Assembly, by going “at the speed of Trump,” by passing the law on hydrocarbons, important parts of petroleum and natural gas, “enhancing transparency, consistency and cutting red tape” and “creating an environment where companies feel free that they want to be able to reinvest and return here.”

He also added that Chevron, which operates in Venezuela, announced that Wednesday is its all-time record production day. Standing next to Burgum at the Miraflores Presidential Palace, Rodríguez announced in front of a group of US mining executives and Venezuelan officials that the hydrocarbons law would be repeated in the mining sector.

The $25 million question in Venezuela

There was a question hanging over the secretary’s trip, which has become a rallying cry among members of the Venezuelan opposition abroad and at home: What Diosdado Cabello? The man responsible for internal security in Venezuela and in charge of mining as the interior minister is accused in the United States of crimes similar to those that led to Maduro’s arrest.

In 2020, the US Department of Justice indicted Cabello along with Maduro and other Venezuelan officials on charges of terrorism and drug trafficking, saying he was one of the leaders of the so-called. Cartel de los Solesan alleged network of Venezuelan officials accused of working with Colombian terrorist groups to smuggle cocaine into Venezuela.

The US State Department is still offering a reward of up to $25 million for information leading to his arrest or conviction. However, during meetings at the Presidential Palace, Cabello was sitting directly across from Burgum, his colleague.

Asked by CBS News, which gained rare access to Venezuela during Burgum’s visit, why he trusted Cabello and whether he would participate in the talks, Burgum shrugged off the question. When asked about Cabello again specifically, he declined to answer. Asked to comment on Cabello, the secretary turned to the next reporter.

As the United States prepares to reopen Venezuela’s mines and American companies prepare to invest billions, that change will take place in a region where a powerful network of armed groups, illegal mining and corruption have shaped the industry for years.

And right now, one of the men the United States once put a price on is still sitting at the negotiating table.

Hope amid security concerns

In the streets of central Caracas on Thursday, a daytime march culminated in a memorial where Hugo Chávez was laid to rest. Maduro’s supporters carried signs accusing the “regime” of “kidnapping” the imprisoned leader and his wife, Cilia Flores.

A tearful woman, remembering Chávez’s legacy, described the weeks following Maduro’s capture as “a painful time.” But when asked about the influx of American oil and mining officials and the agreements Rodríguez’s trustees entered into with the US government and private industry, he said he was “very proud” of Delcy Rodríguez, Interior Minister Diosdado Cabello, Defense Minister Padrino López, and Jorge Rodríguez – leading figures in Maduro’s interim government.

“President Delcy Rodríguez is a peaceful woman,” he said. He also added that he believes that the ministers “are working for the group, leaving their personal interests … they may enter the conflict because we are an anti-imperialist country, but the group is very important.”

Jholeika Gordillo, the president of Gas Caracas, a public gas distribution company, who describes herself on social media as “Chávez’s daughter,” acknowledged the need to invest in reviving oil production for the development of the Venezuelan people, adding that the agreements are part of Rodríguez’s efforts to “maintain peace and stability.”

Some accuse the Trump administration of forcing deals.

Both sides echo optimism, but security remains a major concern for Venezuela’s Arco Minero del Orinoco, a 112,000-square-kilometer mining complex in the country’s south created by presidential decree in 2016.

UN fact-finding missions and independent researchers say they are criminal syndicates; the organization known as the National Liberation Army, or ELN, which was designated by the US as a terrorist group; insurgents opposing the Revolutionary Armed Forces of Colombia, known as FARC; and local militias control large sections of the mines, taxing the miners and enforcing violent rule.

The investigation documented forced labor, sexual exploitation and child labor in mining camps, while mercury pollution and deforestation spread across indigenous lands and major river systems across the Venezuelan Amazon.

A report by the Washington-based Center for Strategic and International Studies found that “victims are forced into sex or find it the only option. Children are particularly vulnerable to local trafficking. There are reports that the average age of victims of sex trafficking is 13 to 14 years old.”

Asked by CBS News what the US plan is to deal with criminals in the mining sector and whether the US is happy with military involvement to fight those players, Burgum said the answer is economic and not military.

“The existence of the security problems you described is a function of the economic situation,” he said. The new mining law, he added, would create “big, high-paying jobs,” and “that economic power is more important than military force in driving change.”