What This Bill Does
This bill directs the Secretary of State to develop a multi-year strategy to combat illegal gold mining in the Western Hemisphere. The strategy addresses the environmental damage and criminal activity linked to illegal gold mining, including connections to drug trafficking organizations and terrorist groups. The bill also requires federal agencies to investigate illegal gold trade and work with other countries to stop these activities.
##
Who It Affects
- The Secretary of State and multiple federal departments (Treasury, Homeland Security, Justice, Interior, and the U.S. Agency for International Development)
- Foreign governments in Latin America and the Caribbean
- Artisanal and small-scale gold miners in the Western Hemisphere
- Criminal organizations and terrorist groups involved in illegal gold mining
- U.S. companies that purchase or trade gold
- Congress (through required briefings and reports)
##
Key Provisions
- The Secretary of State must develop a comprehensive strategy to combat illegal gold mining in the Western Hemisphere, working with other federal agencies. (Sec. 4(a))
- The strategy must include policies to interrupt connections between small-scale miners and criminal actors who profit from mining. (Sec. 4(b)(1))
- The strategy must address how to stop financing and enrichment of criminals involved in illegal gold mining and prevent foreign persons linked to these crimes from accessing U.S. territory, markets, or financial systems. (Sec. 4(b)(3))
- The strategy must build capacity of foreign law enforcement to counter illegal gold mining, money laundering, human trafficking, and cross-border gold smuggling. (Sec. 4(b)(4))
- The Secretary of State must provide classified briefings to Congress about illegal gold mining activities in Venezuela within 90 days of the bill becoming law, and regular briefings about strategy implementation every six months for three years. (Sec. 5, Sec. 4(f))
- The Secretary of State must lead international financial investigations to identify and track assets stolen from Venezuela that are connected to money laundering and mining-related crimes. (Sec. 6(1))
- The U.S. Agency for International Development must establish a public-private partnership with Colombia, Ecuador, Peru, and other democracies in the region to support responsible gold sourcing and help small-scale miners formalize their operations. (Sec. 8(b))
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What Changes
If this bill becomes law, the federal government will create a new coordinated strategy specifically targeting illegal gold mining across the Western Hemisphere. The U.S. will work to prevent foreign criminals and their associates from accessing American financial systems and markets. Federal agencies will share intelligence and conduct investigations with other countries to track illegal gold money flows. Small-scale miners in Latin America will gain access to new programs offering training, financing, and support for switching to legal mining practices. Congress will receive regular updates on illegal gold mining in Venezuela and efforts to combat it.
##
Important Definitions
- **Artisanal and small-scale mining (ASM)**: Mining that uses simple, low-cost technology and manual labor-intensive work, is poorly regulated, and typically features harsh and dangerous working conditions. (Sec. 3(2))
- **Illicit actors**: People on U.S. terrorism lists, people designated as global terrorists or major drug traffickers, people blocked by the U.S. Treasury Department, and drug trafficking organizations. (Sec. 3(3))
- **Key stakeholders**: Private sector organizations, industry representatives, and civil society groups representing communities affected by illegal mining, including indigenous groups, that support the strategy. (Sec. 3(4))
- **Legal Gold and Mining Partnership Strategy**: The comprehensive strategy the Secretary of State will develop to combat illegal gold mining. (Sec. 3(5))
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Effective Date
Not specified in bill text
II
Calendar No. 57
118TH CONGRESS
1ST SESSION
S. 797
To establish and implement a multi-year Legal Gold and Mining Partnership
Strategy to reduce the negative environmental and social impacts of
illicit gold mining in the Western Hemisphere, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 14, 2023
Mr. RUBIO (for himself and Mr. MENENDEZ) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
MAY 4, 2023
Reported by Mr. MENENDEZ, with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
A BILL
To establish and implement a multi-year Legal Gold and
Mining Partnership Strategy to reduce the negative envi-
ronmental and social impacts of illicit gold mining in
the Western Hemisphere, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘United States Legal
4
Gold and Mining Partnership Act’’.
5
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SEC. 2. FINDINGS.
1
Congress makes the following findings:
2
(1) The illicit mining, trafficking, and commer-
3
cialization of gold in the Western Hemisphere—
4
(A) negatively affects the region’s economic
5
and social dynamics;
6
(B) strengthens transnational criminal or-
7
ganizations and other international illicit actors;
8
and
9
(C) has a deleterious impact on the envi-
10
ronment and food security.
11
(2) A lack of economic opportunities and the
12
weak rule of law promote illicit activities, such as il-
13
licit gold mining, which increases the vulnerability of
14
individuals in mining areas, including indigenous
15
communities, who have been subjected to trafficking
16
in persons, other human rights abuses, and popu-
17
lation displacement in relation to mining activity,
18
particularly in the artisanal and small-scale mining
19
sector.
20
(3) Illicit gold mining in Latin America often
21
involves and benefits transnational criminal organi-
22
zations,
drug
trafficking
organizations,
terrorist
23
groups, and other illegal armed groups that extort
24
miners and enter into illicit partnerships with them
25
in order to gain revenue from the illicit activity.
26
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•S 797 RS
(4) Illicit gold supply chains are international in
1
nature and frequently involve—
2
(A) the smuggling of gold and supplies,
3
such as mercury;
4
(B) trade-based money laundering; and
5
(C) other cross-border flows of illicit as-
6
sets.
7
(5) In Latin America, mineral traders and ex-
8
porters, local processors, and shell companies linked
9
to
transnational
criminal
networks
and
illegally
10
armed groups all play a key role in the trafficking,
11
laundering, and commercialization of illicit gold from
12
the region.
13
(6) According to a report on illegally mined
14
Gold in Latin America by the Global Initiative
15
Against Transnational Organized Crime—
16
(A) more than 70 percent of the gold
17
mined in several Latin American countries,
18
such as Colombia, Ecuador, and Peru, is mined
19
through illicit means; and
20
(B) about 80 percent of the gold mined in
21
Venezuela is mined through illicit means and a
22
large percentage of such gold is sold—
23
(i)
to
the
state
mining
company,
24
Minerven, a gold processor that has been
25
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•S 797 RS
designated by the Office of Foreign Assets
1
Control of the Department of the Treas-
2
ury, pursuant to Executive Order 13850,
3
and is operated by the Maduro regime; or
4
(ii)
through
other
trafficking
and
5
commercialization networks from which the
6
Maduro regime benefits financially.
7
(7) Illegal armed groups and foreign terrorist
8
organizations, such as the Eje´rcito de Liberacio´n
9
Nacional (National Liberation Army—ELN), work
10
with transnational criminal organizations in Ven-
11
ezuela that participate in the illicit mining, traf-
12
ficking, and commercialization of gold.
13
(8) Transnational criminal organizations based
14
in Venezuela, such as El Tren de Aragua, have ex-
15
panded their role in the illicit mining, trafficking,
16
and commercialization of gold to increase their
17
criminal profits.
18
SEC. 3. DEFINITIONS.
19
In this Act:
20
(1)
APPROPRIATE
CONGRESSIONAL
COMMIT-
21
TEES.—The term ‘‘appropriate congressional com-
22
mittees’’ means—
23
(A) the Committee on Foreign Relations of
24
the Senate; and
25
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•S 797 RS
(B) the Committee on Foreign Affairs of
1
the House of Representatives.
2
(2)
ARTISANAL
AND
SMALL-SCALE
MINING;
3
ASM.—The terms ‘‘artisanal and small-scale mining’’
4
and ‘‘ASM’’ refer to a form of mining common in
5
the developing world that—
6
(A) typically employs rudimentary, simple,
7
and low-cost extractive technologies and manual
8
labor-intensive techniques;
9
(B) is frequently subject to limited regula-
10
tion; and
11
(C) often features harsh and dangerous
12
working conditions.
13
(3) ILLICIT ACTORS.—The term ‘‘illicit actors’’
14
includes—
15
(A) any person included on any list of—
16
(i) United States-designated foreign
17
terrorist organizations;
18
(ii) specially designated global terror-
19
ists (as defined in section 594.310 of title
20
31, Code of Federal Regulations);
21
(iii) significant foreign narcotics traf-
22
fickers (as defined in section 808 of the
23
Foreign
Narcotics
Kingpin
Designation
24
Act (21 U.S.C. 1907); or
25
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•S 797 RS
(iv) blocked persons, as maintained by
1
the Office of Foreign Assets Control of the
2
Department of the Treasury; and
3
(B) drug trafficking organizations.
4
(4)
KEY
STAKEHOLDERS.—The
term
‘‘key
5
stakeholders’’ means private sector organizations, in-
6
dustry representatives, and civil society representa-
7
tives that are committed to the implementation of
8
the Legal Gold and Mining Partnership Strategy.
9
(5) LEGAL
GOLD
AND
MINING
PARTNERSHIP
10
STRATEGY; STRATEGY.—The terms ‘‘Legal Gold and
11
Mining Partnership Strategy’’ and ‘‘Strategy’’ mean
12
the strategy developed pursuant to section 4.
13
(6) RELEVANT
FEDERAL
DEPARTMENTS
AND
14
AGENCIES.—The
term
‘‘relevant
Federal
depart-
15
ments and agencies’’ means—
16
(A) the Department of State;
17
(B) the Department of the Treasury;
18
(C) the Department of Homeland Security,
19
including U.S. Customs and Border Protection
20
and U.S. Immigration and Customs Enforce-
21
ment;
22
(D) the Department of Justice, including
23
the Federal Bureau of Investigation and the
24
Drug Enforcement Administration;
25
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•S 797 RS
(E) the Department of the Interior;
1
(F) the United States Agency for Inter-
2
national Development; and
3
(G) other Federal agencies designated by
4
the President.
5
SEC. 4. LEGAL GOLD AND MINING PARTNERSHIP STRAT-
6
EGY.
7
(a) STRATEGY REQUIRED.—The Secretary of State,
8
in coordination with the heads of relevant Federal depart-
9
ments and agencies, shall develop a comprehensive, multi-
10
year strategy, which shall be known as the Legal Gold and
11
Mining Partnership Strategy (referred to in this section
12
as the ‘‘Strategy’’), to combat illicit gold mining in the
13
Western Hemisphere.
14
(b) ELEMENTS.—The Strategy shall include policies,
15
programs, and initiatives—
16
(1) to interrupt the linkages between ASM and
17
illicit actors that profit from ASM in the Western
18
Hemisphere;
19
(2) to deter ASM in environmentally protected
20
areas, such as national parks and conservation
21
zones, to prevent mining-related contamination of
22
critical natural resources, such as water resources,
23
soil, tropical forests, and other flora and fauna, and
24
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•S 797 RS
aerosol contamination linked to detrimental health
1
impacts;
2
(3) to counter the financing and enrichment of
3
actors involved in the illicit mining, trafficking, and
4
commercialization of gold, and the abetting of their
5
activities by—
6
(A) promoting the exercise of due diligence
7
and the use of responsible sourcing methods in
8
the purchase and trade of ASM;
9
(B) preventing and prohibiting foreign per-
10
sons who control commodity trading chains
11
linked to illicit actors from enjoying the benefits
12
of access to the territory, markets or financial
13
system of the United States, and halting any
14
such ongoing activity by such foreign persons;
15
and
16
(C) supporting the capacity of financial in-
17
telligence units, customs agencies, and other
18
government institutions focused on anti-money
19
laundering initiatives and combating the financ-
20
ing of criminal activities and terrorism to exer-
21
cise oversight consistent with the threats posed
22
by illicit gold mining;
23
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•S 797 RS
(4) to build the capacity of foreign civilian law
1
enforcement institutions in the Western Hemisphere
2
to effectively counter—
3
(A) linkages between illicit gold mining, il-
4
licit actors, money laundering, and other finan-
5
cial crimes, including trade-based money laun-
6
dering;
7
(B) linkages between illicit gold mining, il-
8
licit actors, trafficking in persons, and forced or
9
coerced labor, including sex work and child
10
labor;
11
(C) the cross-border trafficking of illicit
12
gold, and the mercury, cyanide, explosives, and
13
other hazardous materials used in illicit gold
14
mining; and
15
(D) surveillance and investigation of illicit
16
and related activities that are related to or are
17
indicators of illicit gold mining activities;
18
(5) to ensure the successful implementation of
19
the existing Memoranda of Understanding signed
20
with the Governments of Peru and of Colombia in
21
2017 and 2018, respectively, to expand bilateral co-
22
operation to combat illicit gold mining;
23
(6) to work with governments in the Western
24
Hemisphere, bolster the effectiveness of anti-money
25
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•S 797 RS
laundering efforts to combat the financing of illicit
1
actors in Latin America and the Caribbean and
2
counter the laundering of proceeds related to illicit
3
gold mining by—
4
(A) fostering international and regional co-
5
operation and facilitating intelligence sharing,
6
as appropriate, to identify and disrupt financial
7
flows related to the illicit gold mining, traf-
8
ficking,
and
commercialization
of
gold
and
9
other minerals and illicit metals; and
10
(B) supporting the formulation of strate-
11
gies to ensure the compliance of reporting insti-
12
tutions involved in the mining sector and to
13
promote transparency in mining-sector trans-
14
actions;
15
(7) to support foreign government efforts—
16
(A) to increase regulations of the ASM sec-
17
tor;
18
(B) to facilitate licensing and formalization
19
processes for ASM miners;
20
(C) to create and implement environmental
21
safeguards to reduce the negative environmental
22
impact of mining on sensitive ecosystems; and
23
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(D) to develop mechanisms to support reg-
1
ulated cultural artisanal mining and artisanal
2
mining as a job growth area;
3
(8) to engage the mining industry to encourage
4
the building of technical expertise in best practices,
5
environmental safeguards, and access to new tech-
6
nologies;
7
(9) to support the establishment of gold com-
8
modity
supply
chain
due
diligence,
responsible
9
sourcing, tracing and tracking capacities, and stand-
10
ards-compliant commodity certification systems in
11
countries in Latin America and the Caribbean, in-
12
cluding efforts recommended in the OECD Due Dili-
13
gence Guidance for Responsible Supply Chains of
14
Minerals
from
Conflict-Affected
and
High
Risk
15
Areas, Third Edition (2016);
16
(10) to reduce the negative environmental im-
17
pacts of ASM, particularly—
18
(A) the use of mercury in preliminary re-
19
fining;
20
(B) the destruction of tropical forests;
21
(C) the construction of illegal and unregu-
22
lated dams and the resulting valley floods;
23
(D) the pollution of water resources and
24
soil; and
25
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•S 797 RS
(E) the release of dust, which can contain
1
toxic chemicals and heavy metals that can cause
2
severe health problems;
3
(11) to aid and encourage ASM miners—
4
(A) to formalize their business activities,
5
including through skills training, technical and
6
business assistance, and access to financing,
7
loans, and credit;
8
(B) to utilize environmentally safe and sus-
9
tainable mining practices, including by scaling
10
up the use of mercury-free gold refining tech-
11
nologies, and mining methods and technologies
12
that do not result in deforestation, forest de-
13
struction, air pollution, water and soil-contami-
14
nation, and other negative environmental im-
15
pacts associated with ASM;
16
(C) to reduce the costs associated with for-
17
malization and compliance with mining regula-
18
tions;
19
(D) to fully break away from the influence
20
of illicit actors who leverage the control of terri-
21
tory and use violence to extort miners and push
22
them into illicit arrangements;
23
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•S 797 RS
(E) to adopt and utilize environmentally
1
safe and sustainable mining practices, includ-
2
ing—
3
(i) mercury-free gold refining tech-
4
nologies; and
5
(ii) extractive techniques that do not
6
result in
[Text truncated for display. Full text available on Congress.gov.]