Venezuela's National Assembly has granted preliminary approval to a new mining bill that aims to attract foreign investment by reforming the sector at what it describes as "Trump speed".

The legislation seeks to replace an outdated framework nearly three decades old and follows a visit by US Interior Secretary Doug Burgum to Caracas, reported Bloomberg.

A majority of lawmakers supported the proposal, while moderate opposition members abstained as they received the draft shortly before the session.

The bill, which requires another vote to become law, intends to bolster legal guarantees for investors and introduces independent mediation and arbitration for dispute resolution after national legal options are exhausted.

Lawmaker Orlando Camacho highlighted these points during the legislative session.

The reform efforts appear to emulate recent changes in Venezuela's oil sector, where spaces have been opened for companies in the US following the capture of former President Nicolás Maduro in January.

Officials point out that the mining overhaul aims to attract capital into bauxite, gold and other strategic mineral projects.

According to the International Energy Agency (IEA), demand for critical minerals is expected to quadruple by 2040 due to the rise in electric vehicles sales and clean energy initiatives.

However, reports indicate challenges such as illegal mineral extraction involving Colombian guerrilla groups and state-linked actors in Venezuela.

During Burgum's visit earlier this month, interim president Delcy Rodríguez expressed interest in pursuing a “win-win” formula for the mining industry.

In a joint statement to journalists, Rodríguez urged lawmakers to support the reforms to encourage investment, reported the BBC.

Despite Venezuela having substantial resources, it faces illegal mining operations and allegations of corruption.