Venezuela legislature approves mining law meant to open sector to foreign investment

Venezuela’s ruling party-controlled National Assembly on Thursday approved a mining law expected to open the sector to private and foreign investment, following loosened restrictions by the US to spur foreign investment in the beleaguered economy.

The administration of US President Donald Trump has supported a series of moves by acting President Delcy Rodriguez to attract investors and stabilize the country since a January raid that captured President Nicolas Maduro, with Trump repeatedly praising Rodriguez for cooperating with the US.

The law repeals mining regulations from 1999 and 2015 and allows domestic, foreign, state-owned and private companies or consortiums to exploit gold and “strategic minerals”. Concessions will be for a maximum of 30 years, but can be extended by up to two 10-year periods.

Mineral deposits remain the property of the state and disputes can be resolved through arbitration, according to the law, which also creates a royalty tax of up to 13% of the gross production value of the mineral and up to a 6% tax on companies carrying out primary mining activities.

The law, which says the central bank will take charge of gold sales, was passed unanimously.

The Trump administration has been bullish on the bill, with US Interior Secretary Doug Burgum saying during a March visit that it will create opportunities for companies and that Rodriguez has promised to ensure mining companies’ security.

Rodriguez has repeatedly emphasized the same message, saying last month that 120 potential energy investors, largely from the United States, have visited Venezuela since she took up her post and that investors will have legal and security guarantees.

(By Vivian Sequera, Deisy Buitrago, Marianna Parraga and Julia Symmes Cobb)