CARACAS, Venezuela — Venezuelan legislators enacted comprehensive mining legislation Thursday as the nation attempts to draw cautious international investors to an industry previously controlled by criminal organizations with government connections.
The legislative action represents the most recent policy initiative by acting President Delcy Rodríguez following increased pressure from the Trump administration, which resulted in the U.S. military removing former President Nicolás Maduro from power in January after 26 years of socialist governance.
The comprehensive legislation must now face constitutional review by Venezuela’s highest court before implementation.
The new law governs mineral extraction rights, creates classifications for small, medium, and large mining operations, and permits independent dispute arbitration — a provision international investors consider essential protection against government asset seizures. Additionally, the legislation prohibits top officials including the president, vice president, cabinet members, and governors from obtaining mining permits.
National Assembly president Jorge Rodríguez described the legislation as a “vehicle for the construction of future prosperity” and an “instrument that protects” mining workers throughout Venezuela following its passage.
The vote occurred one day after the acting president requested patience from public and private employees, whose salaries have long been insufficient to purchase basic goods, while her administration addresses economic challenges. She pledged a wage adjustment for May 1 without revealing specific amounts.
While workers demonstrated for improved compensation in Caracas on Thursday, Delcy Rodríguez departed for Grenada on her inaugural international visit as acting president.
Twenty years ago, numerous international companies in Venezuela’s mining and petroleum industries experienced government asset confiscation. Nevertheless, as essential oil income declined, Maduro’s administration established a mining development area in 2016 covering more than 10% of Venezuelan territory across the nation’s central region.
Mining activities for gold, diamonds, copper, and additional minerals have expanded significantly since that designation. Many operations remain informal and unlicensed, functioning under harsh conditions with criminal organization involvement.
Murder, human trafficking, fuel smuggling, and additional criminal activities occur regularly in mining regions, yet ordinary Venezuelans continue migrating there seeking quick wealth and poverty escape.
Government officials and military personnel receive portions of illegal mining profits in exchange for permitting mine operations.
“The mining and subsequent sale of gold has proven to be a lucrative financial scheme for some well-connected Venezuelans and senior officers within the National Bolivarian Armed Forces, which profits from charging criminal organizations for access and inputs, such as fuel,” according to a U.S. State Department congressional report from last year.
“The estimated market value of gold mined in Venezuela is difficult to confirm, but well-respected sources estimate that it averaged $2.2 billion annually over the past five years.”
The recently enacted legislation establishes royalty payments and taxation while limiting mining permits to 30-year terms with renewal options. The law also creates imprisonment penalties for illegal activity participants and environmental damage causes, while authorizing confiscation of illegally extracted minerals.
