Venezuela Introduces New Mining Law to Attract Foreign Investment
On Thursday, Venezuela’s parliament approved a new mining law that aims to promote private entrepreneurship as the socialist government attempts to draw in U.S. and foreign investments following years of strict regulations.
Controlled by the ruling United Socialist Party of Venezuela (PSUV), Congress has unanimously sanctioned a bill consisting of 131 articles to replace the outdated mining laws that have been in place for nearly three decades.
This new legislation appears to be part of an initiative by Delcy Rodriguez, the acting president, to offer international investors, particularly those from the U.S., “legal guarantees and more tax flexibility.” The National Assembly, which leans heavily socialist, is spearheaded by Delcy’s brother, Jorge Rodriguez.
Rodriguez expressed gratitude via social media for the unanimous approval of the Organic Mining Law, describing it as a key tool to modernize, regulate, and promote the country’s mining sector. She stated, “This law will increase legal certainty, attract investment, and enhance mineral resources for national development.”
The new mining law, pending Delcy Rodriguez’s signature, replaces regulations from 1999 and 2015, allowing both domestic and foreign entities, including state-owned and private firms, to mine for gold and other strategic minerals. It offers concessions for up to 30 years, with the possibility of a 10-year renewal.
Beyond simplifying tax requirements and offering tax exemptions, the law also promotes foreign investment and provides access to international arbitration.
The introduction of this law follows U.S. Secretary of the Interior Doug Burgum’s recent visit to Caracas, where he met with Delcy Rodriguez. During that meeting, they discussed a potential long-term partnership in the energy sector, with Rodriguez signaling an intention to update the country’s mining legislation.
Interestingly, around the end of March, it was revealed that the U.S. received a gold shipment valued at $100 million—marking the first such import from a South American nation in 20 years.
A report from Venezuelan newspaper El Nacional noted that the law took four parliamentary sessions to pass and mentioned that the old mining regulations were initially enacted under special powers granted by the late Hugo Chávez.
Earlier this year, amidst the backdrop of political upheaval, including the arrest of dictator Nicolas Maduro, the ruling socialists also revised the hydrocarbon law to encourage foreign investment in the oil sector, signaling a broader shift away from strict socialist policies.
