Communication the Key when Dealing with Communities

Cereceres Estudio Legal (CEL), a law firm with over 20 years of experience in the Mexican mining industry, advises both foreign and domestic players on regulatory specifications and variations to ensure that its clients are as prepared as they can be before jumping headfirst into a project. Rafael Cereceres, the firm’s administrative partner, stresses the importance of thorough preparation to all prospective mineral explorers in Mexico. “Before a project is begun, an environmental study must be performed to determine pollution levels,” he explains. “It is fundamental that companies secure the required environmental permits at the correct time because there always seems to be an issue that mining companies do not apply for the adequate permit."

In order to avoid non-compliance issues a project must display a strong commitment to sustainable practices from the outset, in order to convince the authorities of their dedication to social responsibility. “If a project is started with strong environmental practices the results will be positive,” notes Cereceres. “Regardless of whether this is done through ignorance or purposefully, it still counts as non-compliance with the requirements of the law, and sanctions will be imposed for this oversight.”

Another area to which CEL devotes much of its efforts is on land rights and other community-related issues. Mining is by its very nature a divisive industry, and despite being undeniably essential to Mexico’s economy, many local residents, including ejido land owners, react negatively to new projects sprouting up in their communities. For Cereceres, communication is a vital tool in helping mining companies overcome such challenges. “I have seen that a lot of mining companies in their haste to begin operations negotiate not with the ejido leaders but with individual members of the community,” he comments. “When the company begins giving these land proprietors money, it will never end. Instead, it makes more sense to approach the ejido authorities directly and come to an agreement at this point.” Once the streams of communication have been established, a company must then have a local understanding of how to negotiate with ejido authorities, which includes a familiarity with the concept of how ejido land is divided and registered. For Cereceres, herein lies the key to a project’s success or failure.

Naturally, over the course of its two decades in the business CEL has developed the contacts, negotiating skills, and deep industry knowledge to advise and assist its customers on such issues. This experience tells Cereceres that the sector is strong, and he plans to help both current and potential clients make the most of the imminent recovery he expects to see in Mexico. “It will be a mistake to leave Mexico because I foresee changes for the country,” he predicts. “We plan to attract and retain valuable clients, helping foreign and national companies with projects due to our broad experience and contacts in the government."