Debate on Mining Reforms May Start Soon

Mexico’s United Commissions of Energy, Commerce and Competitiveness are expected to receive the draft opinion of the new mining reforms from the Commission of Environment and Natural Resources today. Once the committee's opinion has been presented, the debate on the mining regulations is scheduled to begin on the same day in the Chamber of Deputies.

Although President López Obrador's reforms appear to be moving forward, CAMIMEX warned that they might cost the nation up to 420,000 direct jobs and US$9 billion in lost investment over the next few years. Additionally, the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) requested parliament to host a town hall so that the 70 sectors that may be impacted by the reforms could better understand the situation. 

On March 28, President López Obrador presented an initiative to modify the Mining Law, the National Water Law, the General Law for Ecological Balance and Environmental Protection and the General Law for the Prevention and Management of Mine Waste. The proposal aims to reduce the duration of concessions in the sector from 50 to 15 years, with the possibility of extending them only once for an equal period. Additionally, it aims to halt the granting of permits in protected natural areas or areas with low water availability.

The right of concession holders to access land expropriation will also be eliminated. Instead, the proposal suggests managing this through an agreement between concession holders and landowners or right holders. "This modification will force mining companies to negotiate monetary compensation subject to the consent of the landowners, including ejidos, communities and agricultural bodies, in general," the initiative mentions. The proposal also suggests a consultation with Indigenous communities before granting the concessions and it establishes an obligation for concession winners to present a social impact study to determine the potential effects that mining activities could have on people's lives.

According to experts in the mining sector, if the proposed changes to the Mining Law are approved, the consequences will also affect electromobility and the transition to green energies. "Ignorance about the mining industry in Mexico prevails and has led to the creation of approximately 30 policies or proposals that do not have solid arguments, added to a context where no concession has been granted to continue developing this industry," added Karina Rodriguez Matus, Partner, Rodriguez Matus & Feregrino & Partners.