Venezuela Approves Mining Law to Attract Foreign Investment

Venezuela's ruling party-controlled National Assembly has approved a new mining law in an initial vote, marking a significant step towards opening the country's economy to private and foreign investment. This reform, supported by the United States and Acting President Delcy Rodríguez, repeals a 1999 regulation, extends concession terms from 20 to 30 years, and allows companies to exploit gold, diamonds, and rare earths. Key provisions include international arbitration for dispute resolution and new tax calculations for mining projects, designed to attract investors. The U.S. has shown strong support, with President Donald Trump praising Rodríguez's cooperation and U.S. Interior Secretary Doug Burgum visiting Venezuela to express optimism. Following Burgum's visit, the U.S. issued a license authorizing transactions involving Venezuelan-origin gold with state-owned Minervén S.C., provided contracts adhere to U.S. law. This mining reform follows a similar oil reform and aims to stabilize Venezuela's economy and address billions in debt owed to companies like Crystallex International Corporation, Gold Reserve Inc., and Rusoro Mining from past nationalizations.