Venezuela Opens its Mining up to Private Investment

Venezuela has approved mining legislation that could encourage investments from private and foreign entities.

In an attempt to stabilise the country's economy, the new law repeals mining regulations from 1999 and 2015, modernising its mining industry and enabling more excavation of Venezuela's gold and critical minerals.

The country is opening its vast mineral and oil reserves to private investment following the passing of the new law. The legislation was approved unanimously by the government-controlled National Assembly in an attempt to liberalise its economy following the US arrest of its leader Nicolás Maduro in January 2026.

Venezuela is welcoming investors to unlock value from its wealth of resources, replacing a long-standing legal framework that previously restricted the private sector's role in mining.

In January, a hydrocarbons law was passed, reforming its previous Organic Hydrocarbons Law to allow private sector participation in the oil and gas industry, reducing state control and allowing private firms to directly engage in exploration and production with less regulatory pressure.

Opening doors to investment

Acting President Delcy Rodríguez is working to align with the US and develop diplomatic ties with President Donald Trump.

Following the raid in January, the US has loosened restrictions in Venezuela, encouraging the country to welcome outside capital to boost its economy.

Venezuela hosts the world's largest oil reserves and has significant deposits of gold and critical minerals. This includes coltan, used to produce tantalum for smartphones, automotive electronics and laptops, and bauxite, the world's main source of aluminium.

The country does not currently have any industrial-scale mining of its resources, but the new law could welcome investments from outside companies.

The legislation will welcome domestic, foreign, state-owned and private companies to exploit the materials, with concessions permitted for up to 30 years.

The legislation creates a simplified tax scheme, which includes royalties of up to 13% of the gross production value of the mineral and a 6% tax on gross revenue from companies carrying out mining activities.

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Critical minerals for global supply

"I'm feeling very optimistic about an environment where investment is going to flow not just to offshore oil and gas, not just to Caucus, but actually to the interior where these enormous resources exist," explained US Interior Secretary, Doug Burgum, in March, after a meeting with President Rodríguez.

"The people of Venezuela have been resourceful in trying to protect their own resources from the hyperinflation that's occurred. But I think the faster that we can move on normalising relations, the faster you're going to see the gap between the official and the unofficial currency rate close."

"We saw at the ministerial that was held at the State Department with Marco Rubio in early March, 51 countries coming to Washington DC wanting to sign agreements where nations could trade freely with the price floor around critical minerals, the resources that are here around not precious metals like gold, but critical minerals in this country and minerals that you need like boxite for aluminum for defence and for advanced manufacturing and for your laptop."

"And if people don't understand critical minerals, just understand that every phone and every camera that you're pointing at me right now has got rare earth minerals in it. It's not just for defense and for computers. Everybody needs to have a secure supply of these to keep the global economy going. The United States is committed to leading in that area.

"And again, Venezuela as a trusted ally and partner of the United States, could play a huge role in that."

Concerns over transparency measures

Though this could mean a more stable economy for Venezuela and a more developed mining supply chain, critics have their doubts. Those opposed worry that the new amendments create more opacity within operations, preventing citizens from having insights into what is occurring around them.

Environmental organisations have raised concerns about the ecological impact of expanded mining operations. A significant portion of Venezuela's mining takes place in an 11.2-million-hectare stretch of rainforest named the Orinoco Mining Arc.

The lack of transparency measures in the new legislation has prompted calls for stronger oversight mechanisms. Critics argue that without proper safeguards, the reforms could lead to environmental degradation and exploitation. Indigenous communities in mining regions have also expressed concerns about the potential impact on their lands and livelihoods.