Venezuela’s National Assembly has initially approved a new mining bill aimed at attracting foreign investment by reforming the country’s mining sector. It is said to be moving at “Trump speed”, meaning rapid policy changes to revive the mining sector after years of stagnation.

The main objective of this new bill is to replace the outdated mining law from the late 90s, provide legal support for investors, and develop bauxite, gold and other critical mineral supply chains. This reform is followed by the recent oil industry changes, especially after the capture of former president Nicolás Maduro in January. 

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Bauxite is particularly important because it is the primary raw material used to produce aluminium, which is essential for industries such as transportation, construction, renewable energy technologies, and electric vehicles. 

The bill would allow both domestic and foreign firms to mine resources. It also states that mining licenses could increase from 20 years to 30 years, giving companies longer operational certainty. US Interior Secretary Doug Burgum recently visited Caracas to discuss cooperation on Venezuela’s mineral and energy sector. This bill still requires a second vote before it can become law.

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The International Energy Agency expects global demand for critical minerals to increase four times by 2040 due to the expansion of electric vehicles and clean energy systems. Venezuela’s large bauxite reserves could play an important role in global aluminium supply chains if mining activities increased through investment and regulatory reforms.

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Despite possessing substantial mineral resources, Venezuela’s mining sector continues to face challenges, including illegal mineral extraction involving Colombian guerrilla groups and actors linked to the state. Additionally, the electricity crisis, especially problems at the Simón Bolívar Hydroelectric Plant, disrupted aluminium smelting at CVG Venalum and CVG Alcasa.

The country also contains several critical minerals, including beryllium, lead, magnesium, nickel, phosphate, platinum, titanium, uranium, vanadium, and zinc, which are important for modern industries and clean energy technologies.

Note: The image used in this article is generated with an AI tool and does not depict any real-time moment