Venezuela's Economic Shift: New Mining Regulation Proposal

Venezuela's acting government submitted a mining regulation proposal to the national assembly, aiming to boost foreign investment in oil and minerals. The proposal repeals a 1999 law, allowing companies to exploit resources and extending concessions from 20 to 30 years. This is part of U.S.-backed economic reforms.

On Monday, Venezuela's acting government introduced a mining regulation proposal to the nation's ruling-party controlled national assembly. This move is part of a slate of U.S.-endorsed reforms intended to revitalize the economy by inviting foreign investment in oil and mineral sectors.

The U.S. administration under President Donald Trump has stood behind efforts by acting President Delcy Rodriguez to draw investors and stabilize Venezuela following a U.S. operation in January resulting in the capture of President Nicolas Maduro. Trump has lauded Rodriguez's cooperation with the U.S. in these endeavors.

The proposed legislation, a draft of which has been reviewed by Reuters, seeks to repeal the 1999 mining regulation law. It would permit both foreign and domestic companies to exploit gold, diamonds, and rare earth elements, while extending concession durations from 20 to 30 years.

(With inputs from agencies.)