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S 799119th CongressIn Committee

United States Legal Gold and Mining Partnership Act

Introduced: Feb 27, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

This bill, the United States Legal Gold and Mining Partnership Act, would create a comprehensive, multi-year strategy led by the Secretary of State (in coordination with other federal agencies) to reduce illicit gold mining and its harmful environmental and social effects in the Western Hemisphere. The plan would focus on breaking the links between artisanal and small-scale miners and illicit actors, promoting responsible mining and traceable supply chains, strengthening law enforcement and financial-tracking capacity, and encouraging formalization and environmental safeguards. It also envisions a robust public-private partnership to improve transparency and due diligence in gold supply chains, with involvement from governments in the region and international partners. The measure includes targeted sanctions, international cooperation, and funding to implement the strategy, plus reporting requirements to Congress. If enacted, the bill would push for formalization of ASM, responsible sourcing, mercury-free refining, better border and financial surveillance, and public awareness campaigns. It explicitly targets illicit networks tied to gold in Latin America and the Caribbean, and it authorizes up to $10 million for fiscal years 2025-2026 to carry out the Strategy, along with semiannual congressional briefings and a classified Venezuela-focused briefing. It would also require coordination with multilateral institutions and private sector partners to build traceable, standards-based gold value chains.

Key Points

  • 1Comprehensive Legal Gold and Mining Partnership Strategy: The Act requires the Secretary of State, with other federal agencies, to develop a multi-year strategy to combat illicit gold mining in the Western Hemisphere, including concrete policies, programs, and initiatives to cut the links between ASM and illicit actors, deter mining in protected areas, and disrupt financial flows.
  • 2Focus on environmental and human-rights protections: The Strategy aims to deter mining in environmentally sensitive areas, reduce mercury use, protect water and forests, prevent pollution, and address labor abuses (including forced or child labor) associated with illicit mining and related activities.
  • 3Anti-money laundering, financial investigations, and sanctions: The bill emphasizes countering money laundering linked to illicit gold and enabling targeted sanctions against Maduro regime officials and others involved in illicit gold activities, with international cooperation and technical assistance to building sanctions frameworks.
  • 4Public-private partnership and responsible sourcing: It envisions a public-private partnership inspired by the Swiss Better Gold Initiative to improve transparency and traceability, formalize ASM, increase financing access for compliant miners, establish certification, promote responsible-sourcing campaigns, and connect US buyers with responsibly sourced gold.
  • 5Regional collaboration and assistance: The Strategy calls for cooperation with Colombia, Ecuador, Peru, and other democratically elected governments in the region; it includes a role for civil society and local communities in decision-making and ensuring free and informed consent where mining is possible.
  • 6Specific reporting and classified briefings: The bill requires a 180-day plan submission to Congress, semiannual briefings for three years thereafter, a classified briefing within 90 days on illicit mining in Venezuela (and ties to foreign actors), and coordinated international financial investigations and assistance to establish sanctions mechanisms.
  • 7Authorization of appropriations: The Act authorizes up to $10 million to implement the Strategy from Department of State appropriations for fiscal years 2025 and 2026.

Impact Areas

Primary group/area affected- Artisanal and small-scale gold miners (ASM), including indigenous communities, who may benefit from formalization, training, access to financing, mercury-free technologies, and better working conditions.- Local communities and environments in the Western Hemisphere (water resources, forests, soil, health impacts) due to emphasis on reducing pollution, mercury use, and habitat destruction.Secondary group/area affected- Governments and law enforcement agencies in Latin America and the Caribbean, which would receive training, capacity-building, and cooperation on AML/CTF (anti-money-laundering/financing of crime) and cross-border investigations.- Financial institutions and private sector actors involved in gold supply chains, which would face enhanced due diligence, traceability, and certification requirements.- U.S. agencies (State, Treasury, Homeland Security, Justice, Interior, USAID) coordinating the strategy and implementing public-private partnerships.Additional impacts- Strengthened international cooperation and potential sanctions against illicit actors and regimes (notably the Maduro regime in Venezuela), affecting illicit gold networks and related finance.- Promotion of responsible gold sourcing in the region, potentially opening markets for certified, traceable gold and increasing transparency in mining livelihoods.- Possible tensions with governments or networks currently benefiting from illicit mining or informal mining activities; could influence regional geopolitics and U.S.-Latin America relations.- Journalistic and civil-society engagement: provisions to assist journalists and involve civil society in reform efforts.Artisanal and small-scale mining (ASM): Low-tech, labor-intensive gold mining often outside strong regulation.Due diligence and responsible sourcing: Verifying that gold is mined and traded in a way that respects laws, human rights, and environmental standards.Traceability and certification: Systems to track the origin of gold from mine to market, proving it comes from legitimate sources.Money laundering: Making illicit money appear legitimate through financial channels.Public-private partnership: Collaboration between government, private companies, and sometimes civil-society groups to achieve shared goals.SANCTIONS: Financial or political penalties intended to influence behavior of governments or actors involved in illicit activities.
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