By Vivian Sequera and Deisy Buitrago

CARACAS, April 9 (Reuters) – Venezuela’s ruling party, which controls the National Assembly, passed a mining law on Thursday that is expected to open the sector to private and foreign investment, following the United States’ easing of restrictions aimed at boosting foreign capital in the struggling economy.

The administration of U.S. President Donald Trump has endorsed a series of measures by interim President Delcy Rodríguez to attract investors and stabilize the country through a raid in January that captured President Nicolás Maduro, who is emerging as a new point of contact, with Trump repeatedly praising Rodríguez for cooperating with the United States.

The law repeals the mining regulations of 1999 and 2015 and allows domestic, foreign, state-owned, and private companies, as well as consortia, to mine gold and “strategic minerals.” Concessions will have a maximum term of 30 years but may be extended for up to two additional 10-year periods.

Mineral deposits remain the property of the state, and disputes may be resolved through arbitration, according to the law, which also establishes a royalty tax of up to 13% of the gross value of mineral production and a tax of up to 6% on companies engaged in primary mining activities. The central bank will be responsible for gold sales.

The National Assembly passed the bill unanimously.

The Trump administration has expressed support for the law, and U.S. Secretary of the Interior Doug Burgum said during a visit in March that will create opportunities for businesses and that Rodríguez has promised to ensure the safety of mining companies.

Rodríguez has reiterated this same message, noting last month that 120 potential energy investors, mostly from the United States, have visited Venezuela since he took office and that investors will be provided with legal and security guarantees.

This law has been sorely needed for a long time, said a mining executive who is applying for licenses to export equipment to Venezuela and mine the country's deposits—especially rare earth minerals—which remain largely unexplored.

“The incentives for the industry are still not enough, and the United States also needs to speed up the licensing and authorization process. If they want to capitalize on the momentum generated by the conflict in the Middle East, they need to act quickly,” he added.

The United States has issued a license which authorizes certain transactions involving gold of Venezuelan origin and with the Minerven, a state-owned mining company and its subsidiaries, provided that the contracts are governed by U.S. law.

Venezuela owes billions of dollars to industrial conglomerates, oil companies, and mining firms following waves of nationalizations two decades ago, including Crystallex, Gold Reserve (GRZ.V) y Rusoro Mining (RML.V).

Reporting by Vivian Sequera and Deisy Buitrago in Caracas; additional reporting by Marianna Parraga in Houston; written by Julia Symmes Cobb; edited by Lisa Shumaker.

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