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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 797 Reported in Senate (RS)]

<DOC>

                                                        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 environmental and social 
impacts of illicit gold mining in the Western Hemisphere, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``United States Legal Gold 
and Mining Partnership Act''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress makes the following findings:</DELETED>
        <DELETED>    (1) The illicit mining, trafficking, and 
        commercialization of gold in the Western Hemisphere--</DELETED>
                <DELETED>    (A) negatively affects the region's 
                economic and social dynamics;</DELETED>
                <DELETED>    (B) strengthens transnational criminal 
                organizations and other international illicit actors; 
                and</DELETED>
                <DELETED>    (C) has a deleterious impact on the 
                environment and food security.</DELETED>
        <DELETED>    (2) A lack of economic opportunities and the weak 
        rule of law promote illicit activities, such as illicit gold 
        mining, which increases the vulnerability of individuals in 
        mining areas, including indigenous communities, who have been 
        subjected to trafficking in persons, other human rights abuses, 
        and population displacement in relation to mining activity, 
        particularly in the artisanal and small-scale mining 
        sector.</DELETED>
        <DELETED>    (3) Illicit gold mining in Latin America often 
        involves and benefits transnational criminal organizations, 
        drug trafficking organizations, terrorist groups, and other 
        illegal armed groups that extort miners and enter into illicit 
        partnerships with them in order to gain revenue from the 
        illicit activity.</DELETED>
        <DELETED>    (4) Illicit gold supply chains are international 
        in nature and frequently involve--</DELETED>
                <DELETED>    (A) the smuggling of gold and supplies, 
                such as mercury;</DELETED>
                <DELETED>    (B) trade-based money laundering; 
                and</DELETED>
                <DELETED>    (C) other cross-border flows of illicit 
                assets.</DELETED>
        <DELETED>    (5) In Latin America, mineral traders and 
        exporters, local processors, and shell companies linked to 
        transnational criminal networks and illegally armed groups all 
        play a key role in the trafficking, laundering, and 
        commercialization of illicit gold from the region.</DELETED>
        <DELETED>    (6) According to a report on illegally mined Gold 
        in Latin America by the Global Initiative Against Transnational 
        Organized Crime--</DELETED>
                <DELETED>    (A) more than 70 percent of the gold mined 
                in several Latin American countries, such as Colombia, 
                Ecuador, and Peru, is mined through illicit means; 
                and</DELETED>
                <DELETED>    (B) about 80 percent of the gold mined in 
                Venezuela is mined through illicit means and a large 
                percentage of such gold is sold--</DELETED>
                        <DELETED>    (i) to the state mining company, 
                        Minerven, a gold processor that has been 
                        designated by the Office of Foreign Assets 
                        Control of the Department of the Treasury, 
                        pursuant to Executive Order 13850, and is 
                        operated by the Maduro regime; or</DELETED>
                        <DELETED>    (ii) through other trafficking and 
                        commercialization networks from which the 
                        Maduro regime benefits financially.</DELETED>
        <DELETED>    (7) Illegal armed groups and foreign terrorist 
        organizations, such as the Ejercito de Liberacion Nacional 
        (National Liberation Army--ELN), work with transnational 
        criminal organizations in Venezuela that participate in the 
        illicit mining, trafficking, and commercialization of 
        gold.</DELETED>
        <DELETED>    (8) Transnational criminal organizations based in 
        Venezuela, such as El Tren de Aragua, have expanded their role 
        in the illicit mining, trafficking, and commercialization of 
        gold to increase their criminal profits.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Appropriate congressional committees.--The 
        term ``appropriate congressional committees'' means--</DELETED>
                <DELETED>    (A) the Committee on Foreign Relations of 
                the Senate; and</DELETED>
                <DELETED>    (B) the Committee on Foreign Affairs of 
                the House of Representatives.</DELETED>
        <DELETED>    (2) Artisanal and small-scale mining; asm.--The 
        terms ``artisanal and small-scale mining'' and ``ASM'' refer to 
        a form of mining common in the developing world that--
        </DELETED>
                <DELETED>    (A) typically employs rudimentary, simple, 
                and low-cost extractive technologies and manual labor-
                intensive techniques;</DELETED>
                <DELETED>    (B) is frequently subject to limited 
                regulation; and</DELETED>
                <DELETED>    (C) often features harsh and dangerous 
                working conditions.</DELETED>
        <DELETED>    (3) Illicit actors.--The term ``illicit actors'' 
        includes--</DELETED>
                <DELETED>    (A) any person included on any list of--
                </DELETED>
                        <DELETED>    (i) United States-designated 
                        foreign terrorist organizations;</DELETED>
                        <DELETED>    (ii) specially designated global 
                        terrorists (as defined in section 594.310 of 
                        title 31, Code of Federal 
                        Regulations);</DELETED>
                        <DELETED>    (iii) significant foreign 
                        narcotics traffickers (as defined in section 
                        808 of the Foreign Narcotics Kingpin 
                        Designation Act (21 U.S.C. 1907); or</DELETED>
                        <DELETED>    (iv) blocked persons, as 
                        maintained by the Office of Foreign Assets 
                        Control of the Department of the Treasury; 
                        and</DELETED>
                <DELETED>    (B) drug trafficking 
                organizations.</DELETED>
        <DELETED>    (4) Key stakeholders.--The term ``key 
        stakeholders'' means private sector organizations, industry 
        representatives, and civil society representatives that are 
        committed to the implementation of the Legal Gold and Mining 
        Partnership Strategy.</DELETED>
        <DELETED>    (5) Legal gold and mining partnership strategy; 
        strategy.--The terms ``Legal Gold and Mining Partnership 
        Strategy'' and ``Strategy'' mean the strategy developed 
        pursuant to section 4.</DELETED>
        <DELETED>    (6) Relevant federal departments and agencies.--
        The term ``relevant Federal departments and agencies'' means--
        </DELETED>
                <DELETED>    (A) the Department of State;</DELETED>
                <DELETED>    (B) the Department of the 
                Treasury;</DELETED>
                <DELETED>    (C) the Department of Homeland Security, 
                including U.S. Customs and Border Protection and U.S. 
                Immigration and Customs Enforcement;</DELETED>
                <DELETED>    (D) the Department of Justice, including 
                the Federal Bureau of Investigation and the Drug 
                Enforcement Administration;</DELETED>
                <DELETED>    (E) the Department of the 
                Interior;</DELETED>
                <DELETED>    (F) the United States Agency for 
                International Development; and</DELETED>
                <DELETED>    (G) other Federal agencies designated by 
                the President.</DELETED>

<DELETED>SEC. 4. LEGAL GOLD AND MINING PARTNERSHIP STRATEGY.</DELETED>

<DELETED>    (a) Strategy Required.--The Secretary of State, in 
coordination with the heads of relevant Federal departments and 
agencies, shall develop a comprehensive, multi-year strategy, which 
shall be known as the Legal Gold and Mining Partnership Strategy 
(referred to in this section as the ``Strategy''), to combat illicit 
gold mining in the Western Hemisphere.</DELETED>
<DELETED>    (b) Elements.--The Strategy shall include policies, 
programs, and initiatives--</DELETED>
        <DELETED>    (1) to interrupt the linkages between ASM and 
        illicit actors that profit from ASM in the Western 
        Hemisphere;</DELETED>
        <DELETED>    (2) to deter ASM in environmentally protected 
        areas, such as national parks and conservation zones, to 
        prevent mining-related contamination of critical natural 
        resources, such as water resources, soil, tropical forests, and 
        other flora and fauna, and aerosol contamination linked to 
        detrimental health impacts;</DELETED>
        <DELETED>    (3) to counter the financing and enrichment of 
        actors involved in the illicit mining, trafficking, and 
        commercialization of gold, and the abetting of their activities 
        by--</DELETED>
                <DELETED>    (A) promoting the exercise of due 
                diligence and the use of responsible sourcing methods 
                in the purchase and trade of ASM;</DELETED>
                <DELETED>    (B) preventing and prohibiting foreign 
                persons who control commodity trading chains linked to 
                illicit actors from enjoying the benefits of access to 
                the territory, markets or financial system of the 
                United States, and halting any such ongoing activity by 
                such foreign persons; and</DELETED>
                <DELETED>    (C) supporting the capacity of financial 
                intelligence units, customs agencies, and other 
                government institutions focused on anti-money 
                laundering initiatives and combating the financing of 
                criminal activities and terrorism to exercise oversight 
                consistent with the threats posed by illicit gold 
                mining;</DELETED>
        <DELETED>    (4) to build the capacity of foreign civilian law 
        enforcement institutions in the Western Hemisphere to 
        effectively counter--</DELETED>
                <DELETED>    (A) linkages between illicit gold mining, 
                illicit actors, money laundering, and other financial 
                crimes, including trade-based money 
                laundering;</DELETED>
                <DELETED>    (B) linkages between illicit gold mining, 
                illicit actors, trafficking in persons, and forced or 
                coerced labor, including sex work and child 
                labor;</DELETED>
                <DELETED>    (C) the cross-border trafficking of 
                illicit gold, and the mercury, cyanide, explosives, and 
                other hazardous materials used in illicit gold mining; 
                and</DELETED>
                <DELETED>    (D) surveillance and investigation of 
                illicit and related activities that are related to or 
                are indicators of illicit gold mining 
                activities;</DELETED>
        <DELETED>    (5) to ensure the successful implementation of the 
        existing Memoranda of Understanding signed with the Governments 
        of Peru and of Colombia in 2017 and 2018, respectively, to 
        expand bilateral cooperation to combat illicit gold 
        mining;</DELETED>
        <DELETED>    (6) to work with governments in the Western 
        Hemisphere, bolster the effectiveness of anti-money laundering 
        efforts to combat the financing of illicit actors in Latin 
        America and the Caribbean and counter the laundering of 
        proceeds related to illicit gold mining by--</DELETED>
                <DELETED>    (A) fostering international and regional 
                cooperation and facilitating intelligence sharing, as 
                appropriate, to identify and disrupt financial flows 
                related to the illicit gold mining, trafficking, and 
                commercialization of gold and other minerals and 
                illicit metals; and</DELETED>
                <DELETED>    (B) supporting the formulation of 
                strategies to ensure the compliance of reporting 
                institutions involved in the mining sector and to 
                promote transparency in mining-sector 
                transactions;</DELETED>
        <DELETED>    (7) to support foreign government efforts--
        </DELETED>
                <DELETED>    (A) to increase regulations of the ASM 
                sector;</DELETED>
                <DELETED>    (B) to facilitate licensing and 
                formalization processes for ASM miners;</DELETED>
                <DELETED>    (C) to create and implement environmental 
                safeguards to reduce the negative environmental impact 
                of mining on sensitive ecosystems; and</DELETED>
                <DELETED>    (D) to develop mechanisms to support 
                regulated cultural artisanal mining and artisanal 
                mining as a job growth area;</DELETED>
        <DELETED>    (8) to engage the mining industry to encourage the 
        building of technical expertise in best practices, 
        environmental safeguards, and access to new 
        technologies;</DELETED>
        <DELETED>    (9) to support the establishment of gold commodity 
        supply chain due diligence, responsible sourcing, tracing and 
        tracking capacities, and standards-compliant commodity 
        certification systems in countries in Latin America and the 
        Caribbean, including efforts recommended in the OECD Due 
        Diligence Guidance for Responsible Supply Chains of Minerals 
        from Conflict-Affected and High Risk Areas, Third Edition 
        (2016);</DELETED>
        <DELETED>    (10) to reduce the negative environmental impacts 
        of ASM, particularly--</DELETED>
                <DELETED>    (A) the use of mercury in preliminary 
                refining;</DELETED>
                <DELETED>    (B) the destruction of tropical 
                forests;</DELETED>
                <DELETED>    (C) the construction of illegal and 
                unregulated dams and the resulting valley 
                floods;</DELETED>
                <DELETED>    (D) the pollution of water resources and 
                soil; and</DELETED>
                <DELETED>    (E) the release of dust, which can contain 
                toxic chemicals and heavy metals that can cause severe 
                health problems;</DELETED>
        <DELETED>    (11) to aid and encourage ASM miners--</DELETED>
                <DELETED>    (A) to formalize their business 
                activities, including through skills training, 
                technical and business assistance, and access to 
                financing, loans, and credit;</DELETED>
                <DELETED>    (B) to utilize environmentally safe and 
                sustainable mining practices, including by scaling up 
                the use of mercury-free gold refining technologies, and 
                mining methods and technologies that do not result in 
                deforestation, forest destruction, air pollution, water 
                and soil-contamination, and other negative 
                environmental impacts associated with ASM;</DELETED>
                <DELETED>    (C) to reduce the costs associated with 
                formalization and compliance with mining 
                regulations;</DELETED>
                <DELETED>    (D) to fully break away from the influence 
                of illicit actors who leverage the control of territory 
                and use violence to extort miners and push them into 
                illicit arrangements;</DELETED>
                <DELETED>    (E) to adopt and utilize environmentally 
                safe and sustainable mining practices, including--
                </DELETED>
                        <DELETED>    (i) mercury-free gold refining 
                        technologies; and</DELETED>
                        <DELETED>    (ii) extractive techniques that do 
                        not result in--</DELETED>
                                <DELETED>    (I) forest clearance and 
                                water contamination; or</DELETED>
                                <DELETED>    (II) the release of dust 
                                or uncontrolled tailings containing 
                                toxic chemicals;</DELETED>
                <DELETED>    (F) to pursue alternative livelihoods 
                outside the mining sector; and</DELETED>
                <DELETED>    (G) to fully access public social services 
                in ASM-dependent communities;</DELETED>
        <DELETED>    (12) to support and encourage socioeconomic 
        development programs, law enforcement capacity-building 
        programs, and support for relevant international initiatives, 
        including by providing assistance to achieve such ends by 
        implementing the Strategy; and</DELETED>
        <DELETED>    (13) to promote responsible sourcing and due 
        diligence at all levels of gold supply chains.</DELETED>
<DELETED>    (c) Challenges Assessed.--The Strategy shall include an 
assessment of the challenges posed by, and policy recommendations to 
address--</DELETED>
        <DELETED>    (1) linkages between ASM sector production and 
        trade, particularly relating to gold, to the activities of 
        illicit actors, including linkages that help to finance or 
        enrich such illicit actors or abet their activities;</DELETED>
        <DELETED>    (2) linkages between illicit or grey market trade, 
        and markets in gold and other metals or minerals and legal 
        trade and commerce in such commodities, notably with respect to 
        activities that abet the entry of such commodities into legal 
        commerce, including--</DELETED>
                <DELETED>    (A) illicit cross-border trafficking, 
                including with respect to goods, persons and illegal 
                narcotics;</DELETED>
                <DELETED>    (B) money-laundering;</DELETED>
                <DELETED>    (C) the financing of illicit actors or 
                their activities; and</DELETED>
                <DELETED>    (D) the extralegal entry into the United 
                States of--</DELETED>
                        <DELETED>    (i) metals or minerals, whether of 
                        legal foreign origin or not; and</DELETED>
                        <DELETED>    (ii) the proceeds of such metals 
                        or minerals;</DELETED>
        <DELETED>    (3) linkages between the illicit mining, 
        trafficking, and commercialization of gold, diamonds, and 
        precious metals and stones, and the financial and political 
        activities of the regime of Nicolas Maduro of 
        Venezuela;</DELETED>
        <DELETED>    (4) factors that--</DELETED>
                <DELETED>    (A) produce linkages between ASM miners 
                and illicit actors, prompting some ASM miners to 
                utilize mining practices that are environmentally 
                damaging and unsustainable, notably mining or related 
                ore processing practices that--</DELETED>
                        <DELETED>    (i) involve the use of elemental 
                        mercury; or</DELETED>
                        <DELETED>    (ii) result in labor, health, 
                        environmental, and safety code infractions and 
                        workplace hazards; and</DELETED>
                <DELETED>    (B) lead some ASM miners to operate in the 
                extralegal or poorly regulated informal sector, and 
                often prevent such miners from improving the 
                socioeconomic status of themselves and their families 
                and communities, or hinder their ability to formalize 
                their operations, enhance their technical and business 
                capacities, and access finance of fair market prices 
                for their output;</DELETED>
        <DELETED>    (5) mining-related trafficking in persons and 
        forced or coerced labor, including sex work and child labor; 
        and</DELETED>
        <DELETED>    (6) the use of elemental mercury and cyanide in 
        ASM operations, including the technical aims and scope of such 
        usage and its impact on human health and the environment, 
        including flora, fauna, water resources, soil, and air 
        quality.</DELETED>
<DELETED>    (d) Foreign Assistance.--The Strategy shall describe--
</DELETED>
        <DELETED>    (1) existing foreign assistance programs that 
        address elements of the Strategy; and</DELETED>
        <DELETED>    (2) additional foreign assistance resources needed 
        to fully implement the Strategy.</DELETED>
<DELETED>    (e) Submission.--Not later than 180 days after the date of 
the enactment of this Act, the President shall submit the Strategy to 
the appropriate congressional committees.</DELETED>
<DELETED>    (f) Briefing.--Not later than 180 days after submission of 
the Strategy, and semiannually thereafter for the following 3 years, 
the Secretary of State, or the Secretary's designee, shall provide a 
briefing to the appropriate congressional committees regarding the 
implementation of the strategy, including efforts to leverage 
international support and develop a public-private partnership to build 
responsible gold value chains with other governments.</DELETED>

<DELETED>SEC. 5. CLASSIFIED BRIEFING ON ILLICIT GOLD MINING IN 
              VENEZUELA.</DELETED>

<DELETED>    Not later than 90 days after the date of the enactment of 
this Act, the Secretary of State, or the Secretary's designee, in 
coordination with the Director of National Intelligence, shall provide 
a classified briefing to the appropriate congressional committees, the 
Select Committee on Intelligence of the Senate, and the Permanent 
Select Committee on Intelligence of the House of Representatives that 
describes--</DELETED>
        <DELETED>    (1) the activities related to illicit gold mining, 
        including the illicit mining, trafficking, and 
        commercialization of gold, inside Venezuelan territory carried 
        out by illicit actors, including defectors from the 
        Revolutionary Armed Forces of Colombia (FARC) and members of 
        the National Liberation Army (ELN); and</DELETED>
        <DELETED>    (2) Venezuela's illicit gold trade with foreign 
        governments, including the Government of the Republic of Turkey 
        and the Government of the Islamic Republic of Iran.</DELETED>

<DELETED>SEC. 6. INVESTIGATION OF THE ILLICIT GOLD TRADE IN 
              VENEZUELA.</DELETED>

<DELETED>    The Secretary of State, in coordination with the Secretary 
of the Treasury, the Attorney General, and allied and partner 
governments in the Western Hemisphere, shall--</DELETED>
        <DELETED>    (1) lead a coordinated international effort to 
        carry out financial investigations to identify and track assets 
        taken from the people and institutions in Venezuela that are 
        linked to money laundering and illicit activities, including 
        mining-related activities, by sharing financial investigations 
        intelligence, as appropriate and as permitted by law; 
        and</DELETED>
        <DELETED>    (2) provide technical assistance to help eligible 
        governments in Latin America establish legislative and 
        regulatory frameworks capable of imposing and effectively 
        implementing targeted sanctions on--</DELETED>
                <DELETED>    (A) officials of the Maduro regime who are 
                directly engaged in the illicit mining, trafficking, 
                and commercialization of gold; and</DELETED>
                <DELETED>    (B) foreign persons engaged in the 
                laundering of illicit gold assets linked to designated 
                terrorist and drug trafficking organizations.</DELETED>

<DELETED>SEC. 7. LEVERAGING INTERNATIONAL SUPPORT.</DELETED>

<DELETED>    In implementing the Legal Gold and Mining Partnership 
Strategy pursuant to section 4, the President should direct United 
States representatives accredited to relevant multilateral institutions 
and development banks and United States ambassadors in the Western 
Hemisphere to use the influence of the United States to foster 
international cooperation to achieve the objectives of this Act, 
including--</DELETED>
        <DELETED>    (1) marshaling resources and political support; 
        and</DELETED>
        <DELETED>    (2) encouraging the development of policies and 
        consultation with key stakeholders to accomplish such 
        objectives and provisions.</DELETED>

<DELETED>SEC. 8. PUBLIC-PRIVATE PARTNERSHIP TO BUILD RESPONSIBLE GOLD 
              VALUE CHAINS.</DELETED>

<DELETED>    (a) Best Practices.--The Administrator of the United 
States Agency for International Development (referred to in this 
section as the ``Administrator''), in coordination with the Governments 
of Colombia, of Ecuador, and of Peru, and with other democratically-
elected governments in the region, shall consult with the Government of 
Switzerland regarding best practices developed through the Swiss Better 
Gold Initiative, a public-private partnership that aims to improve 
transparency and traceability in the international gold 
trade.</DELETED>
<DELETED>    (b) In General.--The Administrator shall coordinate with 
the Governments of Colombia, Ecuador, Peru, and other democratically-
elected governments in the region determined by the Administrator to 
establish a public-private partnership to advance the best practices 
identified in subsection (a), including supporting programming in 
participating countries that will--</DELETED>
        <DELETED>    (1) support formalization and compliance with 
        appropriate environmental and labor standards in ASM gold 
        mining;</DELETED>
        <DELETED>    (2) increase access to financing for ASM gold 
        miners who are taking significant steps to formalize their 
        operations and comply with labor and environmental 
        standards;</DELETED>
        <DELETED>    (3) enhance the traceability and support the 
        establishment of a certification process for ASM 
        gold;</DELETED>
        <DELETED>    (4) support a public relations campaign to promote 
        responsibly-sourced gold;</DELETED>
        <DELETED>    (5) facilitate contact between vendors of 
        responsibly-sourced gold and United States companies; 
        and</DELETED>
        <DELETED>    (6) promote policies and practices in 
        participating countries that are conducive to the formalization 
        of ASM gold mining and promoting adherence of ASM to 
        internationally-recognized best practices and 
        standards.</DELETED>
<DELETED>    (c) Meeting.--The Secretary of State or the Administrator, 
without delegation and in coordination with the governments of 
participating countries, should--</DELETED>
        <DELETED>    (1) host a meeting with senior representatives of 
        the private sector and international governmental and 
        nongovernmental partners; and</DELETED>
        <DELETED>    (2) make commitments to improve due diligence and 
        increase the responsible sourcing of gold.</DELETED>

<DELETED>SEC. 9. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    There is authorized to be appropriated to the Department 
of State $10,000,000 to implement the Legal Gold and Mining Partnership 
Strategy developed pursuant to section 4.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Legal Gold and Mining 
Partnership Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The illicit mining, trafficking, and commercialization 
        of gold in the Western Hemisphere--
                    (A) negatively affects the region's economic and 
                social dynamics;
                    (B) strengthens transnational criminal 
                organizations and other international illicit actors; 
                and
                    (C) has a deleterious impact on the environment, 
                indigenous peoples, and food security.
            (2) A lack of economic opportunities and the weak rule of 
        law promote illicit activities, such as illicit gold mining, 
        which increases the vulnerability of individuals in mining 
        areas, including indigenous communities, who have been 
        subjected to trafficking in persons, other human rights abuses, 
        and population displacement in relation to mining activity, 
        particularly in the artisanal and small-scale mining sector.
            (3) Illicit gold mining in Latin America often involves and 
        benefits transnational criminal organizations, drug trafficking 
        organizations, terrorist groups, and other illegal armed groups 
        that extort miners and enter into illicit partnerships with 
        them in order to gain revenue from the illicit activity.
            (4) Illicit gold supply chains are international in nature 
        and frequently involve--
                    (A) the smuggling of gold and supplies, such as 
                mercury;
                    (B) trade-based money laundering; and
                    (C) other cross-border flows of illicit assets.
            (5) In Latin America, mineral traders and exporters, local 
        processors, and shell companies linked to transnational 
        criminal networks and illegally armed groups all play a key 
        role in the trafficking, laundering, and commercialization of 
        illicit gold from the region.
            (6) According to a report on illegally mined Gold in Latin 
        America by the Global Initiative Against Transnational 
        Organized Crime--
                    (A) more than 70 percent of the gold mined in 
                several Latin American countries, such as Colombia, 
                Ecuador, and Peru, is mined through illicit means; and
                    (B) about 80 percent of the gold mined in Venezuela 
                is mined through illicit means and a large percentage 
                of such gold is sold--
                            (i) to Mibiturven, a joint venture operated 
                        by the Maduro regime composed of Minerven, a 
                        gold processor that has been designated by the 
                        Office of Foreign Assets Control of the 
                        Department of the Treasury, pursuant to 
                        Executive Order 13850 (relating to blocking 
                        property of additional persons contributing to 
                        the situation in Venezuela), and Marilyns Proje 
                        Yatirim, S.A., a Turkish company; or
                            (ii) through other trafficking and 
                        commercialization networks from which the 
                        Maduro regime benefits financially.
            (7) Illegal armed groups and foreign terrorist 
        organizations, such as the Ejercito de Liberacion Nacional 
        (National Liberation Army--ELN), work with transnational 
        criminal organizations in Venezuela that participate in the 
        illicit mining, trafficking, and commercialization of gold.
            (8) Transnational criminal organizations based in 
        Venezuela, such as El Tren de Aragua, have expanded their role 
        in the illicit mining, trafficking, and commercialization of 
        gold to increase their criminal profits.
            (9) Nicaragua's gold exports during 2021 were valued at an 
        estimated $989,000,000 in value, of which
                    (A) gold valued at an estimated $898,000,000 was 
                shipped to the United States;
                    (B) gold valued at an estimated $48,700,000 was 
                shipped to Switzerland;
                    (C) gold valued at an estimated $39,000,000 was 
                shipped to the United Arab Emirates; and
                    (D) gold valued at an estimated $3,620,000 was 
                shipped to Austria.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations of the 
                Senate;
                    (B) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    (C) the Committee on Foreign Affairs of the House 
                of Representatives; and
                    (D) the Committee on Financial Services of the 
                House of Representatives .
            (2) Artisanal and small-scale mining; asm.--The terms 
        ``artisanal and small-scale mining'' and ``ASM'' refer to a 
        form of mining common in the developing world that--
                    (A) typically employs rudimentary, simple, and low-
                cost extractive technologies and manual labor-intensive 
                techniques;
                    (B) is frequently subject to limited regulation; 
                and
                    (C) often features harsh and dangerous working 
                conditions.
            (3) Illicit actors.--The term ``illicit actors'' includes--
                    (A) any person included on any list of--
                            (i) United States-designated foreign 
                        terrorist organizations;
                            (ii) specially designated global terrorists 
                        (as defined in section 594.310 of title 31, 
                        Code of Federal Regulations);
                            (iii) significant foreign narcotics 
                        traffickers (as defined in section 808 of the 
                        Foreign Narcotics Kingpin Designation Act (21 
                        U.S.C. 1907); or
                            (iv) blocked persons, as maintained by the 
                        Office of Foreign Assets Control of the 
                        Department of the Treasury; and
                    (B) drug trafficking organizations.
            (4) Key stakeholders.--The term ``key stakeholders'' means 
        private sector organizations, industry representatives, and 
        civil society groups that represent communities in areas 
        affected by illicit mining and trafficking of gold, including 
        indigenous groups, that are committed to the implementation of 
        the Legal Gold and Mining Partnership Strategy.
            (5) Legal gold and mining partnership strategy; strategy.--
        The terms ``Legal Gold and Mining Partnership Strategy'' and 
        ``Strategy'' mean the strategy developed pursuant to section 4.
            (6) Relevant federal departments and agencies.--The term 
        ``relevant Federal departments and agencies'' means--
                    (A) the Department of State;
                    (B) the Department of the Treasury;
                    (C) the Department of Homeland Security, including 
                U.S. Customs and Border Protection and U.S. Immigration 
                and Customs Enforcement;
                    (D) the Department of Justice, including the 
                Federal Bureau of Investigation and the Drug 
                Enforcement Administration;
                    (E) the Department of the Interior;
                    (F) the United States Agency for International 
                Development; and
                    (G) other Federal agencies designated by the 
                President.

SEC. 4. LEGAL GOLD AND MINING PARTNERSHIP STRATEGY.

    (a) Strategy Required.--The Secretary of State, in coordination 
with the heads of relevant Federal departments and agencies, shall 
develop a comprehensive, multi-year strategy, which shall be known as 
the Legal Gold and Mining Partnership Strategy (referred to in this 
section as the ``Strategy''), to combat illicit gold mining in the 
Western Hemisphere.
    (b) Elements.--The Strategy shall include policies, programs, and 
initiatives--
            (1) to interrupt the linkages between ASM and illicit 
        actors that profit from ASM in the Western Hemisphere;
            (2) to deter ASM in environmentally protected areas, such 
        as national parks and conservation zones, to prevent mining-
        related contamination of critical natural resources, such as 
        water resources, soil, tropical forests, and other flora and 
        fauna, and aerosol contamination linked to detrimental health 
        impacts;
            (3) to counter the financing and enrichment of actors 
        involved in the illicit mining, trafficking, and 
        commercialization of gold, and the abetting of their activities 
        by--
                    (A) promoting the exercise of due diligence and the 
                use of responsible sourcing methods in the purchase and 
                trade of ASM;
                    (B) preventing and prohibiting foreign persons who 
                control commodity trading chains linked to illicit 
                actors from enjoying the benefits of access to the 
                territory, markets or financial system of the United 
                States, and halting any such ongoing activity by such 
                foreign persons;
                    (C) combating related impunity afforded to illicit 
                actors by addressing corruption in government 
                institutions; and
                    (D) supporting the capacity of financial 
                intelligence units, customs agencies, and other 
                government institutions focused on anti-money 
                laundering initiatives and combating the financing of 
                criminal activities and terrorism to exercise oversight 
                consistent with the threats posed by illicit gold 
                mining;
            (4) to build the capacity of foreign civilian law 
        enforcement institutions in the Western Hemisphere to 
        effectively counter--
                    (A) linkages between illicit gold mining, illicit 
                actors, money laundering, and other financial crimes, 
                including trade-based money laundering;
                    (B) linkages between illicit gold mining, illicit 
                actors, trafficking in persons, and forced or coerced 
                labor, including sex work and child labor;
                    (C) the cross-border trafficking of illicit gold, 
                and the mercury, cyanide, explosives, and other 
                hazardous materials used in illicit gold mining; and
                    (D) surveillance and investigation of illicit and 
                related activities that are related to or are 
                indicators of illicit gold mining activities;
            (5) to ensure the successful implementation of the existing 
        Memoranda of Understanding signed with the Governments of Peru 
        and of Colombia in 2017 and 2018, respectively, to expand 
        bilateral cooperation to combat illicit gold mining;
            (6) to work with governments in the Western Hemisphere, 
        bolster the effectiveness of anti-money laundering efforts to 
        combat the financing of illicit actors in Latin America and the 
        Caribbean and counter the laundering of proceeds related to 
        illicit gold mining by--
                    (A) fostering international and regional 
                cooperation and facilitating intelligence sharing, as 
                appropriate, to identify and disrupt financial flows 
                related to the illicit gold mining, trafficking, and 
                commercialization of gold and other minerals and 
                illicit metals; and
                    (B) supporting the formulation of strategies to 
                ensure the compliance of reporting institutions 
                involved in the mining sector and to promote 
                transparency in mining-sector transactions;
            (7) to support foreign government efforts--
                    (A) to increase regulations of the ASM sector;
                    (B) to facilitate licensing and formalization 
                processes for ASM miners;
                    (C) to create and implement environmental 
                safeguards to reduce the negative environmental impact 
                of mining on sensitive ecosystems; and
                    (D) to develop mechanisms to support regulated 
                cultural artisanal mining and artisanal mining as a job 
                growth area;
            (8) to engage the mining industry to encourage the building 
        of technical expertise in best practices, environmental 
        safeguards, and access to new technologies;
            (9) to support the establishment of gold commodity supply 
        chain due diligence, responsible sourcing, tracing and tracking 
        capacities, and standards-compliant commodity certification 
        systems in countries in Latin America and the Caribbean, 
        including efforts recommended in the OECD Due Diligence 
        Guidance for Responsible Supply Chains of Minerals from 
        Conflict-Affected and High Risk Areas, Third Edition (2016);
            (10) to engage with civil society to reduce the negative 
        environmental impacts of ASM, particularly--
                    (A) the use of mercury in preliminary refining;
                    (B) the destruction of tropical forests;
                    (C) the construction of illegal and unregulated 
                dams and the resulting valley floods;
                    (D) the pollution of water resources and soil; and
                    (E) the release of dust, which can contain toxic 
                chemicals and heavy metals that can cause severe health 
                problems;
            (11) to aid and encourage ASM miners--
                    (A) to formalize their business activities, 
                including through skills training, technical and 
                business assistance, and access to financing, loans, 
                and credit;
                    (B) to utilize environmentally safe and sustainable 
                mining practices, including by scaling up the use of 
                mercury-free gold refining technologies, and mining 
                methods and technologies that do not result in 
                deforestation, forest destruction, air pollution, water 
                and soil-contamination, and other negative 
                environmental impacts associated with ASM;
                    (C) to reduce the costs associated with 
                formalization and compliance with mining regulations;
                    (D) to fully break away from the influence of 
                illicit actors who leverage the control of territory 
                and use violence to extort miners and push them into 
                illicit arrangements;
                    (E) to adopt and utilize environmentally safe and 
                sustainable mining practices, including--
                            (i) mercury-free gold refining 
                        technologies; and
                            (ii) extractive techniques that do not 
                        result in--
                                    (I) forest clearance and water 
                                contamination; or
                                    (II) the release of dust or 
                                uncontrolled tailings containing toxic 
                                chemicals;
                    (F) to pursue alternative livelihoods outside the 
                mining sector; and
                    (G) to fully access public social services in ASM-
                dependent communities;
            (12) to support and encourage socioeconomic development 
        programs, law enforcement capacity-building programs, and 
        support for relevant international initiatives, including by 
        providing assistance to achieve such ends by implementing the 
        Strategy;
            (13) to interrupt the illicit gold trade in Nicaragua, 
        including through the use of United States punitive measures 
        against the government led by President Daniel Ortega and Vice-
        President Rosario Murillo and their collaborators pursuant to 
        Executive Order 14088 (relating to taking additional steps to 
        address the national emergency with respect to the situation in 
        Nicaragua), which was issued on October 24, 2022;
            (14) to assist local journalists with investigations of 
        illicit mining, trafficking, and commercialization of gold and 
        its supplies in the Western Hemisphere; and
            (15) to promote responsible sourcing and due diligence at 
        all levels of gold supply chains.
    (c) Challenges Assessed.--The Strategy shall include an assessment 
of the challenges posed by, and policy recommendations to address--
            (1) linkages between ASM sector production and trade, 
        particularly relating to gold, to the activities of illicit 
        actors, including linkages that help to finance or enrich such 
        illicit actors or abet their activities;
            (2) linkages between illicit or grey market trade, and 
        markets in gold and other metals or minerals and legal trade 
        and commerce in such commodities, notably with respect to 
        activities that abet the entry of such commodities into legal 
        commerce, including--
                    (A) illicit cross-border trafficking, including 
                with respect to goods, persons and illegal narcotics;
                    (B) money-laundering;
                    (C) the financing of illicit actors or their 
                activities; and
                    (D) the extralegal entry into the United States 
                of--
                            (i) metals or minerals, whether of legal 
                        foreign origin or not; and
                            (ii) the proceeds of such metals or 
                        minerals;
            (3) linkages between the illicit mining, trafficking, and 
        commercialization of gold, diamonds, and precious metals and 
        stones, and the financial and political activities of the 
        regime of Nicolas Maduro of Venezuela;
            (4) factors that--
                    (A) produce linkages between ASM miners and illicit 
                actors, prompting some ASM miners to utilize mining 
                practices that are environmentally damaging and 
                unsustainable, notably mining or related ore processing 
                practices that--
                            (i) involve the use of elemental mercury; 
                        or
                            (ii) result in labor, health, 
                        environmental, and safety code infractions and 
                        workplace hazards; and
                    (B) lead some ASM miners to operate in the 
                extralegal or poorly regulated informal sector, and 
                often prevent such miners from improving the 
                socioeconomic status of themselves and their families 
                and communities, or hinder their ability to formalize 
                their operations, enhance their technical and business 
                capacities, and access finance of fair market prices 
                for their output;
            (5) mining-related trafficking in persons and forced or 
        coerced labor, including sex work and child labor; and
            (6) the use of elemental mercury and cyanide in ASM 
        operations, including the technical aims and scope of such 
        usage and its impact on human health and the environment, 
        including flora, fauna, water resources, soil, and air quality.
    (d) Foreign Assistance.--The Strategy shall describe--
            (1) existing foreign assistance programs that address 
        elements of the Strategy; and
            (2) additional foreign assistance resources needed to fully 
        implement the Strategy.
    (e) Submission.--Not later than 180 days after the date of the 
enactment of this Act, the President shall submit the Strategy to the 
appropriate congressional committees.
    (f) Briefing.--Not later than 180 days after submission of the 
Strategy, and semiannually thereafter for the following 3 years, the 
Secretary of State, or the Secretary's designee, shall provide a 
briefing to the appropriate congressional committees regarding the 
implementation of the strategy, including efforts to leverage 
international support and develop a public-private partnership to build 
responsible gold value chains with other governments.

SEC. 5. CLASSIFIED BRIEFING ON ILLICIT GOLD MINING IN VENEZUELA.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of State, or the Secretary's designee, in coordination 
with the Director of National Intelligence, shall provide a classified 
briefing to the appropriate congressional committees, the Select 
Committee on Intelligence of the Senate, and the Permanent Select 
Committee on Intelligence of the House of Representatives that 
describes--
            (1) the activities related to illicit gold mining, 
        including the illicit mining, trafficking, and 
        commercialization of gold, inside Venezuelan territory carried 
        out by illicit actors, including defectors from the 
        Revolutionary Armed Forces of Colombia (FARC) and members of 
        the National Liberation Army (ELN); and
            (2) Venezuela's illicit gold trade with foreign 
        governments, including the Government of the Republic of Turkey 
        and the Government of the Islamic Republic of Iran.

SEC. 6. INVESTIGATION OF THE ILLICIT GOLD TRADE IN VENEZUELA.

    The Secretary of State, in coordination with the Secretary of the 
Treasury, the Attorney General, and allied and partner governments in 
the Western Hemisphere, shall--
            (1) lead a coordinated international effort to carry out 
        financial investigations to identify and track assets taken 
        from the people and institutions in Venezuela that are linked 
        to money laundering and illicit activities, including mining-
        related activities, by sharing financial investigations 
        intelligence, as appropriate and as permitted by law; and
            (2) provide technical assistance to help eligible 
        governments in Latin America establish legislative and 
        regulatory frameworks capable of imposing and effectively 
        implementing targeted sanctions on--
                    (A) officials of the Maduro regime who are directly 
                engaged in the illicit mining, trafficking, and 
                commercialization of gold; and
                    (B) foreign persons engaged in the laundering of 
                illicit gold assets linked to designated terrorist and 
                drug trafficking organizations.

SEC. 7. LEVERAGING INTERNATIONAL SUPPORT.

    In implementing the Legal Gold and Mining Partnership Strategy 
pursuant to section 4, the President should direct United States 
representatives accredited to relevant multilateral institutions and 
development banks and United States ambassadors in the Western 
Hemisphere to use the influence of the United States to foster 
international cooperation to achieve the objectives of this Act, 
including--
            (1) marshaling resources and political support; and
            (2) encouraging the development of policies and 
        consultation with key stakeholders to accomplish such 
        objectives and provisions.

SEC. 8. PUBLIC-PRIVATE PARTNERSHIP TO BUILD RESPONSIBLE GOLD VALUE 
              CHAINS.

    (a) Best Practices.--The Administrator of the United States Agency 
for International Development (referred to in this section as the 
``Administrator''), in coordination with the Governments of Colombia, 
of Ecuador, and of Peru, and with other democratically-elected 
governments in the region, shall consult with the Government of 
Switzerland regarding best practices developed through the Swiss Better 
Gold Initiative, a public-private partnership that aims to improve 
transparency and traceability in the international gold trade.
    (b) In General.--The Administrator shall coordinate with the 
Governments of Colombia, Ecuador, Peru, and other democratically-
elected governments in the region determined by the Administrator to 
establish a public-private partnership to advance the best practices 
identified in subsection (a), including supporting programming in 
participating countries that will--
            (1) support formalization and compliance with appropriate 
        environmental and labor standards in ASM gold mining;
            (2) increase access to financing for ASM gold miners who 
        are taking significant steps to formalize their operations and 
        comply with labor and environmental standards;
            (3) enhance the traceability and support the establishment 
        of a certification process for ASM gold;
            (4) support a public relations campaign to promote 
        responsibly-sourced gold;
            (5) include representatives of local civil society to work 
        towards soliciting the free and informed consent of those 
        living on lands with mining potential;
            (6) facilitate contact between vendors of responsibly-
        sourced gold and United States companies; and
            (7) promote policies and practices in participating 
        countries that are conducive to the formalization of ASM gold 
        mining and promoting adherence of ASM to internationally-
        recognized best practices and standards.
    (c) Meeting.--The Secretary of State or the Administrator, without 
delegation and in coordination with the governments of participating 
countries, should--
            (1) host a meeting with senior representatives of the 
        private sector and international governmental and 
        nongovernmental partners; and
            (2) make commitments to improve due diligence and increase 
        the responsible sourcing of gold.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Department of State 
$10,000,000 to implement the Legal Gold and Mining Partnership Strategy 
developed pursuant to section 4.
                                                        Calendar No. 57

118th CONGRESS

  1st Session

                                 S. 797

_______________________________________________________________________

                                 A BILL

     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.

_______________________________________________________________________

                              May 4, 2023

                       Reported with an amendment
```