CAMIMEX Opposes Open-Pit Mining Ban

CAMIMEX has expressed strong opposition to a proposed constitutional reform that seeks to ban open-pit mining in Mexico. The organization, along with other mining groups, is calling for dialogue to foster a better understanding of the mining sector. This approach aims to develop effective regulations that will avoid negatively impacting the over 3 million families who rely on mining for their livelihoods. 

The reform, under consideration by the Commission of Constitutional Points, could restrict Mexico’s ability to effectively utilize its natural resources, increase costs, and diminish the country’s competitiveness across various industries, says CAMIMEX.

CAMIMEX notes that 60% of the value of the national mining and metallurgical production comes from open-pit operations, with its members adhering to stringent environmental standards and aiming for continuous improvement.

The proposed reform may result in significant job losses, with over 1 million formal positions at risk. It could negatively impact the development indices of more than 690 rural mining communities, which currently exceed the national average. Additionally, the reform might reduce federal fiscal contributions by over MX$30 billion (US$1.6 billion) and lead to an economic contraction estimated at MX$250 billion annually, equivalent to a reduction of 1% of the national GDP. 

The proposal could also shift Mexico from being a mineral producer to an importer, increasing imports by 132% and creating a trade deficit of MX$93 billion. Moreover, Mexico’s role as a producer of nine critical minerals for North America could be restricted, as the United States and Canada continue to support and regulate open-pit mining. The reform might also encourage informal mining operations that lack safety and environmental standards.

CAMIMEX called for promoting open-pit mining under a regulatory framework that ensures environmental protection and community welfare, rather than imposing a ban. The organization calls for ongoing dialogue with the federal government, authorities, and stakeholders to find solutions that support balanced environmental, social, and economic development. "Open-pit mining should NOT be banned but should be promoted to strengthen Mexico’s position as a producer of essential minerals. It is a serious activity practiced worldwide, and operating it responsibly and safely is the duty of all stakeholders. The responsible industry should not be penalized, nor should the country’s competitiveness be limited," concludes CAMIMEX’s communications release. 

Mining Voices Against Open-Pit Ban

Since the federal government presented a reform package, including the ban on open-pit mining, on Feb. 5, 2024, stakeholders in the mining sector have strongly opposed it, arguing that the proposal is based on a misunderstanding of the industry.

During his swearing-in ceremony as president of AIMMGM, Rubén del Pozo noted the importance of continuing to defend the interests of the mining sector, as it finds itself in challenging times due to misconceptions. “It must be communicated loud and clear that AIMMGM, the largest and most important mining professional association in our country, opposes this initiative. There is no other mining technique in Mexico or the world that allows us to exploit large-volume, low-grade mineral deposits other than open-pit mining," he stated. 

In an interview with MBN, Raúl García, President, CIMMGM, acknowledged that the ban on open-pit mining and the Mining Law reform have been key issues that have potential repercussions on the mining industry, which is why the college invested resources in consulting parties for this legislation. García stated that the future of the sector depends not only on ongoing communication from within the industry but also on how well the incoming Claudia Sheinbaum administration receives the message. “The sector’s future depends on how Claudia Sheinbaum’s government engages with and understands the mining industry and its role in Mexican society. We are uncertain about the outcome, but we hope for understanding from the new administration. We are working to communicate the importance of mining for energy transition and environmental improvement,” he added.