Overview
- Venezuela’s National Assembly, which voted unanimously Thursday, sent the new Organic Mining Law to the Supreme Court for a constitutionality review.
- The law invites domestic and international companies into mining with long concessions of up to 30 years, possible 20-year extensions, and access to mediation and arbitration.
- The reform preserves state ownership of mineral deposits, sets royalties of up to 13% on gross output payable in cash or in kind, and gives the central bank first rights to buy domestically produced gold.
- Authorities raised penalties for illegal mining, including 10 to 15 years in prison for operations in protected areas and steep fines tied to the official exchange rate.
- The statute repeals the 1999 decree, orders the shutdown of the former mining inspection service, gives the government 180 days to issue regulations, and allows one year for local laws to be updated, following recent U.S. outreach and a Treasury license on some gold activities.