Venezuela’s National Assembly has passed a new mining law designed to attract foreign investment, particularly from the US.
The 131-article bill, pushed by Acting President Delcy Rodríguez, received unanimous approval following an initial vote last month, reported Bloomberg.
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This new framework replaces a nearly 30-year-old system and is part of Rodríguez’s broader strategy to enhance legal assurances and provide a more flexible tax structure for international investors.
During a visit to Caracas by US Interior Secretary Doug Burgum in early March, the Venezuelan Government was encouraged to advance these reforms.
Rodríguez had expressed the intention to implement the changes at “Trump speed”.
Key provisions of the law include “economic equilibrium” clauses and access to international arbitration, shifting away from the 1999 requirement for local court dispute resolutions.
The legislation introduces a simplified tax scheme involving royalties of up to 13% of production and a mining tax of up to 6% on gross revenue, with exemptions from several existing levies.
Concession periods have been extended to a maximum of 30 years, with options for two ten-year renewals.
While the state maintains control over resources and project approvals, the reform aims to create a more investor-friendly environment without full liberalisation.
Officials say the law seeks to attract capital for projects related to bauxite, gold and other strategic minerals.
The government retains authority to identify resources or areas of national importance and apply specific conditions.
The US has granted a licence permitting specific transactions involving gold of Venezuelan origin, as well as dealings with mining company Minerven and its subsidiaries, provided that US law governs the contracts, reported Reuters.
Venezuela is indebted by billions to industrial conglomerates and oil and mining companies following several nationalisations 20 years ago, including those affecting Crystallex, Gold Reserve and Rusoro Mining.
