VENEZUELA’S National Assembly approved an Organic Mining Law today, aiming to attract more investment into the sector.

The law specifies that all mineral resources remain the property of the Venezuelan state, which is responsible for awarding mining concessions of up to 30 years. These may be granted to state-owned enterprises, mixed enterprises, private companies or “artisanal mining brigades.”

But it allows disputes to be resolved through international arbitration, a measure aimed at persuading foreign companies their investments will be secure but which has been used by corporations to sue governments which prioritise social or environmental considerations over their profits in some jurisdictions.

The mining law gives the Central Bank of Venezuela preferential purchase rights for gold, and increases penalties for illegal mining in protected areas to 10-15 years behind bars. 

It also prohibits state officials and their family members from obtaining mining titles until five years after the termination of his duties, preventing their participation as shareholders in co-operatives or companies of the sector.