BENSON, PEREZ MATOS, ANTAKLY & WATTS

FOUNDED 1953

ATTORNEYS – CONSULTANTS

www.bpmaw.net

Caracas, May 19 de 2026

EXECUTIVE REPORT

Law amending the Organic Law on Mines

Instrumento	Fecha	Gaceta Oficial
Organic Law on Mines	04-16-2026	7,020 Extraordinary

With the publication of the Organic Law on Mines (Official Gazette No. 7,020 Extraordinary of April 16, 2026), the Venezuelan State unifies the regulatory framework of the mining sector, repealing previous instruments such as the Decree Law of 1999 and the Gold Reserve Law of 2015.

This change is not only administrative; it represents the reintroduction of the mining concession as a central figure and establishes clear rules for private sector participation under an environment of renewed legal certainty.

1. The Concession as a Pillar of Investment

The new Law restores prominence to the figure of the contractual concession. This mechanism allows individuals and joint ventures to formalize exploration and exploitation rights with defined terms, offering greater operational predictability and protecting the capital invested against administrative discretion.

2. Legal Security and Dispute Resolution

One of the most significant advances of this legal body is Article 9, which expressly authorizes the inclusion of arbitration clauses (national and international) in mining contracts. This measure aligns the Venezuelan legal framework with international investment standards, allowing investors to have neutral mechanisms for conflict resolution.

3. Governance and Supervision Model (SUNAM)

The Law creates the National Superintendence of Mining Activity (SUNAM), an entity in charge of unifying technical, administrative and environmental inspection. Likewise, the National Geo-scientific- mining Data Bank is created, which will centralize technical information, facilitating transparency and decision-making based on accurate data.

4. Economic Regime: Equity and Competitiveness

The tax framework has been updated to reflect the reality of the market:

• Royalties: A clear cap of 13% on gross production.
• Tax on Mining Activity: Up to 6%.
• Special Advantages: The law allows the negotiation of additional benefits (technology, social infrastructure) as part of the contract, granting flexibility to companies to optimize their value proposition to the State.

5. Commitment to the Environment and Occupational Safety

The Act sets rigorous standards for environmental compliance and industrial safety. Responsible management of the ABRAE and the implementation of world-class mining safety protocols are required. For the firm, this point is strategic: preventive compliance advice will be the greatest asset of operators under this new law.

What does this mean for your business? (The value of consulting)

The process of migrating existing contracts and permits is the immediate priority. The First Transitional Provision establishes a period of one year for current operators to adapt their legal situation.

At our firm, we are prepared to accompany you in:

• Audit and Migration: Review of current “alliance” contracts and their conversion to concessions under the new scheme.
• Mining Compliance: Advice on the structuring of industrial safety and environmental compliance plans in accordance with the new SUNAM guidelines.
• Contract Negotiation: Defense and drafting of contracts that ensure legal protection and return on investment under the new tax structure.

Conclusion

The Organic Mining Law of 2026 marks the end of regulatory uncertainty and opens a window of opportunity for sustainable and structured mining projects. We invite our clients and friends to contact our specialized team for a preliminary assessment of their mining assets and projects.

Sincerely,
BENSON, PÉREZ MATOS, ANTAKLY & WATTS

Carlos A. Godoy L.

All Rights Reserved. This work is a contribution of BENSON, PEREZ MATOS, ANTAKLY & WATTS, to its clients, on legal issues of interest, for the purpose of guidance on the matter. It should not be interpreted as a specific legal opinion. Your content may not be distributed without express permission from the Desk.