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Venezuela’s National Assembly has taken a significant step toward overhauling the country’s mining rules, approving a draft law intended to draw international capital into the sector. The proposal would replace a regulatory framework dating back nearly three decades and could open the door to greater private participation in mineral development.

The vote took place shortly after a visit to Caracas by U.S. Interior Secretary Doug Burgum, whose trip signalled growing interest among American officials and companies in Venezuela’s natural resources.

A Bid to Modernize Mining Rules

The proposed legislation seeks to update policies governing the extraction of minerals, including gold, bauxite, and other strategically important materials. The changes are meant to make Venezuela more attractive to international companies willing to finance large-scale projects.

The country has vast mineral deposits that remain underdeveloped largely due to outdated rules and limited investment. By revising the legal framework, the government hopes to revive activity in a sector long overshadowed by its oil industry.

Investor Protections and Dispute Resolution

One critical element of the bill is the introduction of stronger legal protections for companies operating in Venezuela. The draft law includes provisions allowing disputes between investors and the state to be resolved through independent mediation or arbitration, after domestic legal channels have been exhausted.

The proposal received support from most legislators, while some moderate opposition members abstained.

Reform Efforts After Political Upheaval

The push to rewrite mining rules follows political upheaval earlier this year, including the January capture of former president Nicolás Maduro. Since then, interim leader Delcy Rodríguez has promoted economic reforms aimed at attracting international partners.

The mining bill is part of an effort to revive key industries and expand cooperation with foreign companies. Similar changes have recently been introduced in Venezuela’s oil sector, which is also seeking outside investment after years of isolation.

Global Demand Driving Interest in Minerals

Demand for critical minerals is expected to rise sharply in the coming decades. The International Energy Agency estimates global demand could quadruple by 2040 as electric vehicles, battery production, and clean energy technologies expand worldwide.

Venezuela could benefit from that trend if new investment flows into exploration and extraction projects.

The bill still requires a second vote in the National Assembly before it can become law. If approved, it would represent one of the most significant changes to Venezuela’s mining policies in decades.