Venezuela's ruling party-controlled National Assembly approved a new mining law on Thursday, Reuters and AFP reported.
The law is expected to open the sector to private and foreign investment, less than three months after the government rolled back state control of the oil sector. It is in line with US demands to attract external capital to Venezuela's struggling economy, AFP reported.
The administration of US President Donald Trump has supported a series of measures by Venezuela's acting President Delcy Rodriguez to attract investors and stabilize the country. US-Venezuelan ties have grown closer following a January operation in which President Nicolas Maduro was captured by US forces and taken to the United States.
The law repeals mining regulations from 1999 and 2015 and allows national, foreign, state and private companies and consortia to extract gold and what are referred to as strategic minerals. The grants will last a maximum of 30 years, but they can be extended by ten years twice, writes Reuters.
Rodriguez was previously a member of Maduro's inner circle, but since she took over, she has met US demands to exploit Venezuela's oil and other important resources. This writes AFP. She emphasizes that investors will be provided with both legal and security guarantees, writes Reuters.
The law is intended to end more than two decades of state control over the economy. Venezuela has the largest known oil reserves in the world. But it also has large amounts of gold and diamonds, as well as bauxite and coltan, which are used in mobile phones, laptops and other types of electronics. The minerals are largely unexplored in the country.
The law was passed unanimously, according to the speaker of the National Assembly, Jorge Rodriguez, who is the acting president's brother, writes AFP.
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