GEORGETOWN, Guyana — Guyana has committed to intensifying efforts to prevent the illicit trade of gold from Venezuela across its borders, following encouragement from the United States.
President Irfaan Ali declared late on Friday that the South American nation is allocating substantial resources to combat this smuggling issue, which has persisted for years. Enhancements in border patrols and improved surveillance of mining areas have been implemented by the authorities.
Local administrators have expressed concerns that Venezuelan gold, subjected to sanctions, may be mixed with gold mined in Guyana. This mixture is then falsely presented as a local product and distributed across markets in the United States, Canada, the Middle East, and other countries.
In 2021, the Royal Canadian Mint halted gold purchases from a significant export business in Guyana due to suspicions that some of its shipments contained Venezuelan gold, an accusation that the company contested.
Additionally, the U.S. Embassy in Guyana has revoked the visas of several miners who are believed to be involved in smuggling Venezuelan gold to foreign destinations.
Gold represents Guyana’s second-largest export after oil, contributing nearly $1 billion to the nation’s economy last year. According to the Ministry of Natural Resources, gold production amounted to 434,000 ounces last year, slightly more than the 432,000 ounces produced the year before. Alarmingly, it is estimated that up to half of Guyana’s local gold production is smuggled out of the country.
U.S. Ambassador Nicole Theriot commended Guyana for its collaborative efforts, emphasizing the mutual work the countries have undertaken to secure the border between Guyana and Venezuela.
The relationship between these two neighboring South American countries remains strained due to a long-standing dispute over the Essequibo region. Venezuela has claimed the resource-rich area, which comprises two-thirds of Guyana, as its own territory. Rich in valuable resources like gold, diamonds, and timber, the region is also situated near substantial offshore oil reserves, with current production reaching around 650,000 barrels per day.