Any blog on Venezuela must include posts on mining. In the future, I hope to have a post or two from guests with more expertise on the more technical aspects of the mining industry in Venezuela and their complex engineering facets. Meanwhile, we can certainly post things of interest or of general introduction.

Depending on your sources, Venezuela was one of the world’s largest producers (some sources had it as the largest) of direct-reduced iron (iron ore which is reduced to a smaller form, usually pellets by means of a specially formulated gas). It was in the top ten of the world’s producers of iron ore, aluminum, and bauxite. And it still ranks as possessing one of the world’s largest known reserves of crude oil, second only to Saudi Arabia, although some say the United States has surpassed both.

It holds one of the world’s largest reserves of gold and was second only to South Africa in diamond production. Countless gems and precious stones have been mined there, especially in the interior state of Bolivar and the giant Territorio Amazonas.

The attentive reader will note the use of the past tense in the second and third paragraphs above. The past tense is used because extraction and production have suffered precipitous declines since the late 1990’s and early 2000’s. I would not be surprised by the discovery of vast new deposits and reserves, alongside the return of successful mining and production, once the investment climate improves. (Meanwhile, we should not be surprised by the intense interest focused on Venezuela by China and Russia.)

In 1956, Time Magazine had at least two issues on iron ore mining in Venezuela. The article in its November 19 issue began thusly: 

“Inland from Venezuela’s Caribbean coast some 200 miles, the swift, black Caroni River plunges into the chocolate-colored Orinoco. Southward from this junction of two mighty streams lie jungles and sandy scrublands studded with low, reddish mountains. This poor-looking expanse is one of the world’s great storehouses of iron. West of the Caroni looms Cerro Bolivar, blanketed with 500 million tons of high-grade ore. Farther west lies another iron mountain, El Trueno, endowed with 150 million tons. On the other side of the Caroni, Bethlehem Steel Corp. gathers up 3,000,000 tons of ore a year from El Pao….”

Poetically and dramatically, the article captures the vastness of the country’s riches in iron ore alone. The country is “awash” with natural resources, even including coltan. We are told that Venezuela is one of only seven countries in the world that have known coltan reserves in sufficient quantities to export. It is a black mineral that is used in mobile (cell) phones and computer chips.

According to recent publications, metal production is at all-time lows; even oil has suffered catastrophically. Here is a recent headline from a technical publication which will suffice for all: “Venezuela’s Iron Ore Mines Operate At Less Than 10% Of Capacity“.

The iron mines of El Pao, where I was born, had massive structures such as a giant ore crusher which was loaded from trucks carrying about 30 tons of ore from the dynamite sites. The crusher ground the ore down to chunks of about 8 inches. Then its covered conveyer carried the reduced ore to a secondary crusher which crushed it further down to 2 or 3 inches. Finally, that ore was poured into 34-car trains which transported 4,500 tons of crushed ore 35 miles daily to the company port on the Orinoco River from whence it was shipped to a deeper water port on the Caribbean coast, transshipped to larger oceangoing vessels, and delivered to Sparrows Point, Maryland, the world’s largest steel mill at the time.

That accounts for a fraction of the investment required by one company to successfully extract and produce steel. To that, must be added roads, bridges, hundreds of houses for miners and their families, schools, churches, recreational facilities, commissaries, airports, and more. Multiply that by the dozens of American and European companies who came to Venezuela for iron ore, petroleum, and other minerals, and you begin to get an idea of the gargantuan investment made in the country in the first fifty or so years of the 20th century. For example, US Steel’s investment greatly surpassed Bethlehem Steel’s. And so did the oil companies’.

Circa 1958, my beloved aunt visited us from Miami, Florida. Although a busy homemaker, she was of that generation who would, nevertheless, find time to experience and appreciate the natural world that surrounds us. So, naturally, we would go on day excursions to different parts of Guayana. Once, in the interior, as we drove over a small stream she asked my father if he’d stop the car so that we could walk around a bit. We got out and made our way to that stream and my aunt promptly took her shoes off and waded in, carefully stepping on the rocks and smooth stones under the water. 

“There are gems in this place,” she said.

I, regrettably, never learned why she thought that, although I do recall spirited conversations between my parents, my godmother, and my aunt about the possibilities. Then, all possibilities having been exhausted in conversation as we wandered around, we embarked and continued on our journey.

A few years later, my father brought a newspaper report noting that a gem mining concession had been granted in that spot, which became a profitable enterprise.

A country might be supremely rich in natural resources; it may have people, like my aunt, who can discern the riches under the surface. But if it discourages investment and healthy incentives, what can we say about all those natural resources other than, “Why cumbereth it the ground?”

Or, “Why bury your talent?”