Venezuela's New Mining Law Aims to Attract U.S. Investment with Tax Reforms
Venezuela's National Assembly has approved a new mining law designed to attract foreign investment, particularly from the United States. The legislation, consisting of 131 articles, was unanimously approved and is part of a broader strategy to modernize the country's mining sector. The new law replaces a nearly three-decade-old system and introduces a more flexible tax structure to entice international investors. Key features include economic equilibrium provisions, access to international arbitration, and a simplified tax scheme with royalties up to 13% and a mining tax up to 6% on gross revenue. The law also extends concession periods to a maximum of 30 years, with potential renewals. While the state maintains control over resources and project approvals, the reforms aim to create a more favorable investment climate without full liberalization. The U.S. has issued a license for certain transactions involving Venezuelan-origin gold, contingent on contracts being governed by U.S. law. 
