Seoul Gazette - After oil, Venezuela opens up mining to private investors

The South American country, which is undergoing a profound transformation following the US overthrow of leftist leader Nicolas Maduro, has the world's largest proven oil reserves.

But it is also rich in gold and diamonds as well as bauxite and coltan, a mineral that contains a metal used in mobile phones, laptops and other electronics.

The unicameral National Assembly unanimously backed the mining law on its second reading, assembly chief Jorge Rodriguez announced.

Rodriguez, a former member of Maduro's inner circle who is now championing liberal reforms, hailed the law as "a vehicle for building future prosperity."

Maduro was captured by US forces during a January 3 bombing raid on Caracas.

He was replaced by his former deputy Delcy Rodriguez (a sister of Jorge Rodriguez) who has shown herself amenable to US demands on tapping Venezuela's oil and other key resources.

- Security concerns -

The law's adoption comes a month after US Interior Secretary Doug Burgum visited the Caribbean nation to push for a liberalization of the mining code.

Burgum was accompanied by more than two dozen mining company executives, who he said were "eager to get started" once the "red tape" had been cut.

He described the opportunities for collaboration between Caracas and Washington as "unlimited."

The law is part of a series of reforms aimed at ending more than two decades of state control over the economy.

Mining activity is concentrated in an area known as the Orinoco Mining Arc.

Gangs and armed groups, including guerrillas from neighboring Colombia, control much of the area and extort businesses, according to numerous witnesses.

Lisseth Boon, author of the book "Oro malandro" ("Bandit Gold"), told AFP that Venezuela's security forces were complicit in the criminal activity.

Burgum said during his visit to Venezuela that Caracas had promised safe conditions for foreign mining companies keen to invest in the country.

L.Shin--SG