The bill, according to a draft seen by AFP, would allow for private companies to become more involved in Venezuelan mining endeavors, as well as outline mechanisms for arbitration and dispute resolution between parties.

Orlando Camacho, a lawmaker on the Energy and Petroleum commission, said during the debate that the reforms "can help increase all the legal guarantees that allow us to give confidence to national and international investment."

Last week, US Interior Secretary Doug Burgum, who is in charge of mineral resources in the United States, visited Venezuela to push for a liberalization of the country's mining laws.

He said US mining companies were "eager to get started" in the South American country, two months after the US overthrow of longtime socialist leader Nicolas Maduro.

Since then, Washington's attention has been devoted largely to oil, of which Venezuela has the world's largest proven reserves.

But Venezuela is also rich in minerals such as gold and diamonds, as well as bauxite, coltan and other rare materials used to make computers and mobile phones.

Interim president Delcy Rodriguez last month overhauled the state-controlled oil sector to enable a wave of private investment, and she now has set her sights on updating the mining code.

Mining activity is concentrated in a territory known as the Orinoco Mining Arc, where armed groups are active.

Environmentalists have also condemned the expansion of illegal mining in the area, saying it has caused rampant deforestation and river pollution.

Monday's legislative debate was the first round of two required by Venezuelan law, with the proposal now proceeding to public comment.

No date has been set yet for the second debate.