Venezuela Passes New Mining Law Aiming to Gain U.S. Support and Attract Foreign Investment

Golden Ten Data reported on April 10 that the Venezuelan National Assembly unanimously passed a new mining law on Thursday containing 131 articles, aiming to seek support from the United States and attract foreign investment. The law includes provisions supporting foreign investment, such as "economic balance" clauses and international arbitration options, differing from the 1999 framework which limited disputes to local courts. The bill also establishes a simplified taxation system, centered around a royalty of up to 13% of production and a new mining tax of up to 6% of total revenue, while exempting several existing taxes and fees. The franchise period can last up to 30 years, previously 20 years, and may be renewed twice, each time for 10 years. Officials stated that the reform aims to attract funding to projects involving gold, bauxite, and other strategic minerals, but the government retains the power to designate certain resources or areas as in the national interest and impose special conditions.