Ley Orgánica de Minas (2026) replaces decades-old restrictions, reshapes state oversight, and opens a new framework for private participation in Venezuela’s mining industry.
Venezuela has enacted a sweeping new mining regime with the publication of the Ley Orgánica de Minas (2026) in the Official Gazette on 16 April 2026, replacing two cornerstone laws that had governed the country’s mineral sector for decades.
The new legislation repeals the 1999 Mining Law (Decree No. 295), which historically imposed significant restrictions on private and foreign investment in strategic minerals, as well as the 2015 Gold and Strategic Minerals Law (Decree No. 2.165), which reserved the exploration and exploitation of gold and other strategic minerals exclusively for the Venezuelan state.
The reform introduces a comprehensive legal and institutional framework designed to centralise state control over mineral resources while simultaneously modernising the administration and regulation of mining activities across the country.
State ownership remains central
At the core of the new law is the reaffirmation that all mineral deposits located within Venezuelan territory are the exclusive property of the Republic. The legislation characterises these resources as inalienable and imprescriptible public domain assets, underscoring the State’s continuing constitutional authority over the mining sector.
While the framework appears to create new opportunities for private participation through mixed companies and authorised operators, the State retains a dominant role in the ownership, supervision, and commercialisation of strategic resources.
New institutional architecture for mining governance
The law establishes and reorganises several state entities tasked with regulating, supervising, and supporting mining activities.
The Ministry of Mines will serve as the principal governing authority, responsible for formulating mining policy and strategic planning.
A newly created Superintendencia Nacional de la Actividad Minera will function as a specialised autonomous body overseeing supervision, inspection, enforcement, and fiscalisation of mining activities. The agency will also collect mining taxes and royalties.
The law also creates the Banco Nacional del Dato Geo-científico-minero, a centralised repository for the country’s geological, geophysical, and geochemical information, aimed at consolidating mining data management.
Additional institutions include the Fondo Nacional Minero, which will finance social and economic development projects in mining regions, and the Instituto Nacional de Geología y Minería, responsible for identifying, quantifying, and certifying mineral reserves.
To reinforce security and compliance, the legislation establishes the Servicio de Resguardo Nacional Minero, an auxiliary body dedicated to the protection and surveillance of mining operations.
Four levels of mining activity
The law introduces a classification system that divides mining activity into four operational scales based on production volume and territorial size.
Artisanal mining is reserved exclusively for Venezuelan nationals and is defined as personal and direct extraction using manual, environmentally non-harmful tools.
Small-scale mining operations may cover areas of up to 25 hectares and process between one and 350 tons per day.
Medium-scale mining operations are permitted on areas of up to 3,078 hectares with extraction capacities ranging from 350 to 4,400 tons daily.
Any operation exceeding 4,400 tons of material per day is classified as large-scale mining.
Mining activities may be conducted by state-owned enterprises, mixed companies in which the State holds more than 50% ownership, authorised private companies, or organised artisanal mining groups known as Brigadas Mineras.
Concessions, licenses, and strategic minerals
Mining rights under the new regime will be granted through concessions, licenses, and special contractual arrangements.
Mining concessions for exploration and exploitation activities may extend for up to 30 years, with the possibility of two additional 10-year extensions.
For artisanal and small-scale operations, the State may issue mining licenses instead of concessions. These licenses are classified as “precarious” legal titles, meaning they are non-transferable and do not create real property rights for holders.
The law also preserves broad state discretion over strategic minerals. The government may designate certain resources — including gold and radioactive materials — as strategic minerals, allowing the State to reserve exploration and exploitation activities for itself or impose special commercialisation rules.
New fiscal regime for the mining industry
The legislation establishes a dedicated tax and royalty framework for mining operations.
The State may collect royalties of up to 13% of gross production value. In addition, companies engaged in primary mining activities may face a mining tax of up to 6% on gross monthly income.
Exports of critical minerals and rare earth elements are subject to an additional export tax of up to 5% of gross export value.
The law also grants the Central Bank of Venezuela (BCV) a preferential right to purchase all gold produced within the national territory, reinforcing state control over precious metal commercialisation.
At the same time, the legislation introduces targeted fiscal incentives. Mining entities are exempted from several national taxes and contributions, including the Large Wealth Tax and certain obligations related to science, sports, and social security pension contributions.
Environmental and human rights safeguards
The new framework places significant emphasis on environmental sustainability through the principle of Desarrollo Minero Ecológico — or Ecological Mining Development.
Under this principle, mining activities must minimise environmental damage and respect human rights standards.
The law expressly prohibits mining activities in protected natural areas, populated zones, cemeteries, and sacred sites. It also bans the use of substances considered environmentally harmful or degrading.
These provisions appear intended to address longstanding criticism surrounding illegal mining, deforestation, and environmental degradation in sensitive regions of Venezuela, particularly within the Orinoco Mining Arc.
Transition period for existing operators
Existing mining operators will have one year from the publication of the law in April 2026 to adapt their operations and legal structures to the new framework.
Contracts previously executed under Venezuela’s controversial “Antibloqueo” law will remain valid. However, those agreements must be adjusted to comply with the new mining law within 180 days.
The transition provisions suggest the government is seeking continuity for ongoing projects while consolidating all mining activity under the newly unified legal regime.
A major shift for Venezuela’s mining sector
The law represents one of the most significant restructurings of Venezuela’s mining sector in recent decades.
By repealing earlier laws that tightly restricted private involvement in strategic minerals, the government appears to be attempting to modernise the sector while preserving strong state control over resources deemed nationally strategic.
Whether the reforms succeed in attracting investment, increasing transparency, and balancing environmental protections with economic development will likely depend on how the new institutions operate in practice and how consistently the legal framework is enforced in the years ahead.
