Colombia's ELN and FARC dissidents now constitute the largest armed presence inside Venezuela, controlling vast border territories in a violent struggle for dominance. To finance their operations, these terrorist organizations are plundering Venezuela's critical minerals and selling them to Chinese buyers, generating substantial revenue that fuels the conflict. The resulting violence has displaced more than 56,000 people.
Secretary of State Marco Rubio, speaking in Barranquilla, Colombia, last month, condemned the situation, stating that these groups "operate with impunity" along the border, crossing into Colombia to commit crimes and then retreating to Venezuela for shelter. Rubio's remarks underscore the urgent need for the Trump administration to confront the corrupt Venezuelan officials who protect these criminal networks.
The report argues that the United States must take decisive action against the government of interim President Delcy Rodríguez, which it accuses of acting as a security partner rather than addressing the terrorist safe haven within its borders. Venezuelan cartels, including Tren de Aragua—which has authorized attacks on U.S. law enforcement—are profiting heavily from gold and critical mineral extraction.
In southern Venezuela's Orinoco region, government officials and military commanders collaborate with terrorists, cartels, and local mining syndicates known as "sindicatos." These actors provide trading permits, fuel, and equipment access in exchange for bribes, allowing unfettered extraction of tin, rare earths, and coltan—materials essential for jet engines, data centers, nuclear reactors, and military systems.
These minerals are not destined for U.S. defense supply chains. Instead, Chinese intermediaries purchase the illicit ore at premium prices, with smuggling routes running through the port of La Guaira—where falsified export documents are issued—and across the Colombian border via official vehicles or canoes carrying up to 20 tons of raw material, with military officials bribed along the way.
Each shipment strengthens Beijing's stranglehold on mineral processing and undermines U.S. economic security. Venezuela's abundant rare earths could help break China's monopoly, but that opportunity is squandered while Washington continues to overlook the collaboration between corrupt officials and terrorist groups.
U.S. policy has inadvertently compounded the problem. Sanctions carveouts allowing American companies to purchase Venezuelan gold and minerals assume a legitimate market exists, but virtually all production is illicit. Consequently, money flowing under these licenses is likely to reach criminal organizations, providing a veneer of legitimacy to terror financing. The Treasury Department's exemption of U.S. banks from Bank Secrecy Act compliance in Venezuela further acknowledges the opacity of the economy.
Despite these measures, American businesses remain hesitant. The Trump administration mediated a deal to bring Venezuelan gold to the U.S., but no refiners will touch it due to links to criminal gangs. Meanwhile, criminal groups profit, and U.S. taxpayers bear the cost.
Meaningful private sector investment is unlikely under current conditions. Instead of fostering an environment for high-integrity American firms, the administration's protection of Delcy Rodríguez empowers Chinese buyers who ask no questions, shields criminal groups, encourages bribery, and allows illicit mining cash to fuel regional terrorism. As Rubio said, the situation is "not sustainable. We have to confront it."
