Venezuela’s National Assembly has approved, in an initial vote, a new mining law designed to open the country’s mineral sector to private and foreign investment. The proposal is part of broader economic reforms aimed at stabilizing the country’s economy and attracting international capital, according to Reuters.
The draft legislation would replace a mining law dating back to 1999. It allows both domestic and international companies to exploit mineral resources such as gold, diamonds and rare earth elements. Concession periods would also be extended from 20 years to 30 years under the proposal.
Although mineral deposits would remain state property, the law introduces international arbitration to resolve disputes involving mining projects. It also outlines new tax frameworks intended to govern future investments in the sector.
Reform tied to broader economic changes
The reform is one element of a larger package of economic changes backed by the United States following the removal of former President Nicolás Maduro earlier this year. Acting President Delcy Rodríguez has sought to attract investors and rebuild confidence in Venezuela’s economy, which remains under some international sanctions.
U.S. Interior Secretary Doug Burgum expressed optimism about the mining law during a recent visit to Venezuela, saying it could create opportunities for international companies. Shortly after his trip, the United States issued a license allowing certain transactions involving Venezuelan gold, including deals with the state-owned mining company Minerven, provided contracts follow U.S. legal standards.
The proposal must still pass two debates in the legislature before becoming law. However, analysts expect it to be approved because the ruling socialist party holds a majority in the assembly.
Some opposition lawmakers abstained from the first vote, arguing they received the draft only shortly before the session and had insufficient time to review it. Assembly leader Jorge Rodríguez rejected the criticism, saying all legislators were given the document at the same time.
The government has described the reform as similar to earlier changes in the oil sector, which lowered taxes and expanded the role of private companies. Officials say the new mining framework could help Venezuela develop its large reserves of minerals while addressing long-standing disputes with international mining firms over past nationalizations.
Venezuela holds significant deposits of gold and other strategic minerals, though exploration has not yet confirmed the scale of rare earth reserves believed to exist in the country.
