National Assembly approved new Mining Law to attract foreign investment to the sector
The National Assembly sanctioned the new Mining Law in Venezuela, which redefines royalties, taxes, and concessions
TL;DR
- The National Assembly unanimously approved the new Mining Law.
- The law opens the mining sector to private and foreign investment.
- It repeals the mining law from 1999 and includes 131 articles.
- State may charge royalties up to 13% on gross production.
- A specific tax regime includes a mining tax of up to 6%.
- Exemptions from certain taxes are provided.
- Mining activities will not be subject to state or municipal taxes.
- The Central Bank of Venezuela has the right of first refusal for gold purchases.
- Public officials and their families are barred from mining businesses for five years after leaving office.
- The state reserves exploitation of radioactive minerals for strategic reasons.
- Penalties of 10-15 years in prison for mining in protected environmental zones.
- Concessions are set for 30 years, renewable for two additional 10-year periods.
- The law aims to attract foreign capital and reactivate strategic sectors.
- US authorization for American companies to participate in Venezuelan gold activities follows a visit by the US Secretary of the Interior.