March 9 (Reuters) – Venezuela’s acting government on Monday sent a mining regulation proposal to the country’s ruling-party controlled national assembly, the latest salvo in a package of U.S. backed changes meant to open the economy to foreign investment in oil and minerals.
The administration of U.S. President Donald Trump has supported a series of moves by acting President Delcy Rodriguez to attract investors and stabilize the country since a January that captured President Nicolas Maduro, with Trump repeatedly praising Rodriguez for cooperating with the U.S..
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A draft of the law seen by Reuters but not yet made public repeals a 1999 mining regulation law, allows foreign and domestic companies to exploit gold, diamonds and rare earths and increases concessions from 20 years to 30 years.
Though mineral deposits remain the property of the state, disputes will be resolved through international arbitration, according to the draft, which also creates new tax calculations for mining projects.
The law, which much be subject to two debates before it can pass, is likely to be approved given the ruling socialist party’s control of the legislature.
U.S. Interior Secretary Doug Burgum sounded an optimistic note about the law during a visit to Venezuela last week, saying it will create opportunities for companies and that Rodriguez has promised to ensure their security.
The day after Burgum concluded his visit, the U.S. issued a license authorizing certain transactions involving Venezuelan-origin gold, allowing transactions with state-owned mining company Minerven and its subsidiaries, so long as contracts are governed by U.S. law.
Rodriguez has hailed a recent oil reform, which lowered taxes, expanded the oil ministry’s decision power and granted autonomy for private producers, among other measures, as a model for the mining changes.
Reporting by Reuters
Venezuela acting government sends mining reform bill to legislature
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