Western mining conglomerates have expressed strong interest in Venezuela’s mineral potential. (Archive)
Caracas, March 10, 2026 (venezuelanalysis.com) – The Venezuelan National Assembly preliminarily approved a new mining law on Monday as part of continued efforts to attract foreign investment to the country.
Venezuelan Acting President Delcy Rodríguez had announced the new legislation last week during a visit from US Interior Secretary Doug Burgum alongside mining executives and urged parliament to act “swiftly.”
“This law will increase all the legal guarantees that can generate confidence and attract national and foreign investment,” said Orlando Camacho, a congressman from the ruling PSUV-led bloc, during the legislative session.
Camacho added that the bill is adapted to the Caribbean nation’s “present needs” and aims to take advantage of the country’s vast mineral riches, mostly located in the country’s Southeast.
Monday’s vote was endorsed by the pro-government legislative majority. Opposition deputies abstained, complaining that they received the draft less than one hour before the parliamentary session. The text will be subject to consultations and proposals before being put to a second and definitive vote in the coming weeks.
Consisting of 126 articles split into 19 sections, the bill establishes regulations for small, medium, and large-scale mining, as well as the state’s ability to declare certain minerals as strategic and reserve areas for security purposes. It also creates a “social fund” to support mining workers, an oversight superintendency, and a state-run data bank.
Concerning mining activities, the proposed law establishes that joint ventures, private corporations, and small-scale artisanal mining groups are allowed to receive concessions. The new law will replace a 2015 decree that imposed state control over mining exploration, as well as the 1999 Mining Law.
The legislation establishes concessions of up to twenty years that can be renewed for two additional ten-year periods. The issuing of contracts is the responsibility of the Ministry of Ecological Mining Development and will not require National Assembly approval. Corporations are also entitled to several tax breaks, likewise granted at the ministry’s discretion, and can take disputes to international arbitration outside the Venezuelan court system.
The Venezuelan government is also seeking to reorganize the mining sector. A decree published on Friday ordered the Venezuelan General Mining Company (MINERVEN) to be absorbed by the Venezuelan Mining Corporation (CVM).
The mining reform follows a similar pro-business overhaul of Venezuela’s Hydrocarbon Law in January. In an interview, National Assembly President Jorge Rodríguez vowed that parliament would “adapt” laws to attract US investors in the wake of the January 3 US military strikes and kidnapping of President Nicolás Maduro
During his visit last week, Burgum touted Venezuela’s mineral riches and potential opportunities for Western conglomerates. On Friday, the Trump official announced the arrival of US $100 million worth of Venezuelan gold as part of a deal involving Trafigura to export up to 100 tons of gold doré bars worth approximately $165 million.
However, Caracas is not expected to immediately receive the revenue. The US Treasury issued General License 51 (GL51) allowing US entities to purchase, transport and resell Venezuelan-sourced gold but mandating that proceeds be deposited in US government-run accounts before being returned to Venezuela under conditions dictated by the White House.
The sanctions waiver additionally blocks transactions with companies from Cuba, Iran, Russia, and North Korea, and bans involvement in exploration and refining activities.
In tandem, the Trump administration reportedly issued a 30-day license allowing select companies, including Canada’s Gold Reserve, to negotiate mining concessions with the Venezuelan government.
Venezuela possesses vast proven reserves of gold, iron, and bauxite, in addition to lesser quantities of copper and nickel. Analysts have also drawn attention to Venezuela’s significant reserves of coltan, which has important military, aerospace, and electronics applications, as well as unproven deposits of rare earth minerals.
Former President Hugo Chávez sought to end foreign mining concessions in the 2000s, pushing instead for the state to play a leading role and link extraction activities to its basic industries in sectors such as steel and aluminum.
The Chávez government likewise revoked a number of concessions from Western mining companies. Several of them, including Canada’s Crystallex and Gold Reserve, went on to secure compensation via international arbitration bodies.
Since 2015, the Nicolás Maduro administration looked to mining as a potential revenue source amid escalating US sanctions, particularly in the 112,000 square-kilometer Orinoco Mining Arc. Nevertheless, the sector was likewise hit by unilateral coercive measures, while the proliferation of irregular mining groups has generated environmental concerns.
Edited by Lucas Koerner in Fusagasugá, Colombia.