Venezuela passes bill to open mining sector to foreign investors

Venezuela's National Assembly unanimously passed legislation to open the country’s tightly controlled mining sector to foreign investors, signaling an economic shift under the rule of interim President Delcy Rodriguez.

The bill, which is headed to Rodriguez’ desk for final signature, aims to expand the role of private and foreign firms in extracting Venezuela’s strategic minerals.

The legislation focuses on modernizing the country’s significant gold reserves while opening the door to foreign investment in other critical resources such as rare earth elements (REEs), bauxite, iron, coal, copper, nickel, and coltan.

Lawmakers have described the overhaul as a necessary step to integrate the country’s massive mineral wealth into the global economy, which is expected to diversify Venezuela’s revenue streams and reduce its traditional reliance on crude oil.

The mining reform follows a series of legislative changes by the transitional government after the capture of former President Nicolas Maduro’s by the US early this year.

The measure follows the National Assembly’s unanimous approval of a reform to the Organic Hydrocarbons law late January, a parallel piece of legislation aimed at easing operational restrictions and facilitating foreign corporate cooperation in Venezuela’s oil industry.

*Writing by Emir Yildirim in Istanbul