Facing severe international sanctions that have crippled its oil exports, Venezuela is turning to coal to rebuild its economy and increase state revenue.

Two major coal mines in the country’s northwest — Paso Diablo and Mina Norte — have resumed operations through a joint venture between Venezuela’s state-owned Carbozulia and Turkish company Glenmore Dis Ticaret Ve Madencilik A.S., under the partnership Carboturven. The mines restarted at the end of 2024 after being inactive for several years.

Since the relaunch, coal output has surged, reaching around three million tons in the first quarter of 2025. This puts Venezuela on pace to exceed eight million tons of annual production — a milestone not achieved since the early 2000s. The government reportedly plans to raise exports even further to about 10 million tons per year, capitalizing on coal’s exemption from U.S. sanctions.

Most of the country’s coal, which is rich in energy content, is exported abroad as Caracas seeks new ways to generate income amid restrictions on its oil sector.

However, the revival of coal mining has sparked backlash from environmental and Indigenous groups, who accuse the operators of polluting the Guasare River with toxic substances such as mercury, cyanide, and lead. They warn that little is being done to enforce environmental protection standards.

Critics argue that while the move may bring short-term financial relief, it poses long-term risks to health and the environment.

As global oil prices struggle near $60 per barrel and oversupply concerns mount, Venezuela’s renewed focus on coal underscores its urgent effort to keep its resource-driven economy alive despite continued isolation from the global oil market.