Venezuela's new Mining Law expected to be announced before Venezuela's Independence Day celebrations on July 5

VHeadline Venezuela News: Venezuela's new Mining Law is expected to be among a series of decrees to be announced before Venezuela's Independence Day celebrations on July 5 by President Hugo Chavez Frias under special Enabling Act powers given him almost 18 months ago by the National Assembly (AN) to take economic decisions on behalf of the nation without prior reference to the Legislature.

Although the timing and exact details are not yet known, it is understood that the decrees will include a partial reform of a previous Presidential Decree No.395 that will abolish all previously granted mining concessions to bring them into line with central government policy which exercises full sovereignty over all of Venezuela's mineral resources.

Currently operative concessions will NOT be renewed on termination and the continued management of such operations will be required to conform where deemed appropriate to joint venture partnerships with the Venezuelan State as the main shareholder.

Due consideration will also be given to artesanal and small-scale mining, though these will be conducted under established cooperatives, community associations or social production companies which shall be held responsible for all regulatory requirements underer the law.

A senior mining official says that, a National Mining Executive under the corporate control of the Venezuelan Guayana Corporation (CVG), will be the political entity in executive control of all mining operations with comprehensive responsibility for all administration, control, coordination, planning and management of the mining sector, whether under consolidated State-owned mining enterprises or mixed mining (small-scale cooperative) operations.

Although it is NOT yet clear of the new Mining Executive will have ministerial status or remain under the general portfolio of the Basic Industries & Mining (Mibam) Ministry it seems clear that Mibam Minister Rodolfo Sanz will remain in control of the burgeoning mining sector also as president of the CVG and its subsidiaries.

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