Venezuela legislature approves mining law in initial vote

March 9 (Reuters) - Venezuela's ruling party-controlled National ‌Assembly on Monday ​approved ​a mining law expected to open the sector to private and foreign investment, the latest salvo in a package of U.S.-backed changes to the still-sanctioned country's economy.

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 U.S. raid that captured President ‌Nicolas Maduro, with Trump repeatedly praising ‌Rodriguez for cooperating with the U.S.

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 must be subject to two debates before ​it can pass, is likely to be approved given the socialist party's control of the legislature.

It was backed by lawmakers in an initial vote despite abstentions ​from at least one opposition party, which complained that ‌lawmakers had received the draft just before the session began and had not had time to review it.

Rodriguez's brother Jorge Rodriguez, who heads the National ⁠Assembly, rejected the complaint, saying all legislators had received the draft at the same time.

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.

Venezuela owes billions of dollars to industrial conglomerates, oil and mining companies after deep waves of nationalizations ⁠two decades ago, including to Crystallex, Gold ‌Reserve and Rusoro Mining.

Exploration has ​not yet taken place in Venezuela to confirm reserves of rare earths, a grouping of 17 metals used to make magnets that turn power into motion.

(Reporting ‌by Reuters)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Scientists seek clues to longevity from three Brazilian sisters over 100
• US appeals court rejects Trump bid to force Michigan to hand over voter rolls
• US homebuilders advance after Congress passes affordable housing bill