Venezuela Approves New Mining Law for Investment

Venezuelan lawmakers unanimously approved a comprehensive mining law on Thursday, paving the way for increased private and foreign investment in the country's resource-rich sector while addressing long-standing issues of illegal operations and corruption.

The 131-article Organic Mining Law, passed by the National Assembly in Caracas, repeals the previous mining regulations enacted in 1999 under former President Hugo Chávez. It establishes a framework for mineral rights, categorizing mining into small, medium, and large-scale operations. Key provisions include concessions lasting 30 years, renewable for up to two additional 10-year periods, with royalties capped at 13 percent of gross production based on the commercial value of extracted minerals. Payments can be made in cash or in kind. The Central Bank of Venezuela holds a preferential right to purchase gold within five days of extraction. The law also introduces mediation and independent arbitration for investor disputes and prohibits high-ranking officials, including the president, vice president, ministers, and governors, along with their family members, from obtaining mining titles or holding shares in related companies...