Dialog, Innovation Forges Mexican Mining: AIMMGM

Q: Reflecting on the past year under its current leadership, what are the main achievements or programs that AIMMGM has advanced to provide support within the mining industry?
A: AIMMGM, alongside the whole mining sector, maintains continuous, constructive dialogue with federal, state, and municipal authorities. This collaboration aims to establish a regulatory and operational framework that promotes responsible and sustainable mining.

We achieve this through proposals, technical analysis, and by promoting international best practices via our qualified professionals. Our association actively influences the creation of laws and regulations designed to foster investment, ensure legal certainty, and advance social and environmental development. This includes AIMMGM’s participation in working groups and consultation forums, where we present arguments based on the sector's experience and expertise.

Q: How did the engagement of AIMMGM with federal and state authorities contribute to creating a more supportive regulatory and operational environment for responsible mining companies in Mexico?

A: AIMMGM’s primary focus is promoting dialogue with the federal authorities. This particularly involves engagement with the Ministry of Economy (SE) and its Coordination Unit for Extractives Activities (UCAE), along with state authorities and the legislative branch. The purpose is to review the prevailing legal framework and its implications for the Mexican mining industry. This ongoing dialogue, held in various forums, facilitates a continuous exchange of ideas.

Our association has actively participated in developing secondary laws for the mining law. Through this, we seek to ensure legislation is balanced, realistic, and fosters an environment of certainty for mining investment and operations, while promoting benefits for local communities.

Q: What is the nature and extent of AIMMGM's participation in the development of secondary laws in the mining law?
A: Promoting clarity and legal certainty is paramount. We aim to establish a predictable, stable legal framework essential for mining's long-term investments. We also advocate for administrative simplification, seeking to reduce bureaucracy and processing times for permits. A further priority is fostering exploration, incentivizing investment to discover new deposits, thus securing the industry's future and the production of essential materials for the energy transition.

AIMMGM also seeks to promote innovation and cutting-edge technology, driving the adoption of advanced technologies and AI for more efficient and sustainable operations. This is coupled with a focus on strengthening human capital through increased investment in training and capacity building for sector professionals and technicians.

Additionally, we call for fiscal harmonization, guaranteeing a competitive tax regime that does not disincentivize investment, as Mexico's current framework already presents significant differences compared to Latin American counterparts.

Finally, a crucial proposal is the reestablishment of the Mining Fund to mining states and municipalities. This fund should remain a financial support for social work and services, as it has been clearly demonstrated to bring many benefits to mining communities.

Q: How do the mining sector’s objectives converge with the federal government's main initiatives, such as Plan Sonora and Plan México?

A: Plan Sonora, focused on clean energy and electromobility, is expected to significantly impact mining. This initiative implies a growing demand for critical minerals such as copper and lithium, potentially boosting their exploration and production in Mexico, attracting new investment, and strengthening the national supply chain. This positions the mining sector as a fundamental pillar for green technologies.

Regarding Plan México, mining is a significant economic contributor in Mexico, generating thousands of direct and indirect jobs, contributing to GDP, and attracting foreign investment. Plan México aims to maintain and increase the country’s productivity and competitiveness, prioritizing economic growth, dignified job creation, and fostering investment, actions the mining sector already does. 

Q: From AIMMGM's perspective, what will make the XXXVI International Mining Convention in Acapulco a noteworthy event?

A: The XXXVI International Mining Convention in Acapulco is a pivotal event for the industry and the country, especially considering its significant return to the city. The convention symbolizes a vote of confidence and a major impetus for Acapulco's economic and tourism recovery following Hurricane Otis in 2023. Its realization in the city serves as a message of solidarity and support.

The convention will feature a robust and cutting-edge technical program. Attendees can expect conferences, workshops, and exhibitions covering the latest advancements in mining technology, sustainability, exploration, metallurgy, and geology, among other topics. It also provides networking opportunities, serving as the primary meeting point for leaders, professionals, and companies from the Mexican and international mining sectors, facilitating vital knowledge exchange and alliance formation. An extensive exhibition of suppliers will showcase equipment, services, and mining technologies that drive efficiency and safety in the industry. Sustainability will be a key theme, with responsible mining practices, environmental management, community relations, and adherence to sustainable development goals (SDGs) being emphasized throughout the event. Furthermore, discussions will delve into the future of the sector, addressing the challenges and opportunities facing Mexican mining, including new legislation, the demand for critical minerals, and the industry's role in the energy transition.

Q: Regarding potential disruptions like Hurricane Otis in 2023, what contingency measures has AIMMGM implemented to safeguard the XXXVI International Mining Convention and ensure its continuity?

A: Following Hurricane Otis in 2023, AIMMGM implemented rigorous contingency measures to safeguard attendees’ integrity and ensure the convention's continuity. This strategy includes an exhaustive evaluation of infrastructure, ensuring that venues and hotels meet the highest standards of safety and resilience, with verification that rehabilitation efforts follow regulatory guidelines. Detailed emergency plans were developed, establishing robust civil protection protocols for before, during, and after a potential incident. Constant and fluid coordination with authorities, including Civil Protection and local and federal bodies, was maintained to ensure preparedness for any contingency. Proactive communication with participants regarding safety measures and relevant updates before and during the event was also prioritized.

Q: What is AIMMGM's projected economic and development impact of the upcoming convention on Acapulco?

A: The event is expected to generate over US$10 million in direct benefits, with nearly 10,000 attendees boosting hotel occupancy, consumption in restaurants, and use of transport and other tourism services. This will also lead to temporary job creation through the hiring of personnel for event organization, stand setup, and security. The convention will actively promote Acapulco as a prime destination for major events, attracting future congresses and tourists, and will activate the local value chain, benefiting local suppliers of goods and services.

Q: Could you describe the mining sector's contributions to Acapulco's recovery efforts following Hurricane Otis in 2023?

A: The mining sector significantly contributed to Acapulco's recovery. This included economic and in-kind donations, with various mining companies and associations providing financial resources, heavy machinery, construction materials, food, and essential goods for those affected. The sector also provided logistical and personnel support, involving the mobilization of heavy machinery and trained staff for cleanup, debris removal, and general reconstruction efforts. Employees from mining companies and associations like Mujeres WIM de México actively participated in volunteer initiatives to assist affected communities. The decision to uphold the convention in Acapulco this year was itself a demonstration of the industry's commitment to reactivating the local economy through business tourism.

Q: What are the key lessons Hurricane Otis provided for the mining industry?

A: Hurricane Otis left several key lessons for the mining industry, primarily emphasizing resilience, natural disaster preparedness, and social responsibility. It underscored the need for robust and updated emergency plans for extreme climatic events across all mining operations in the context of climate change, especially in vulnerable regions. The crisis demonstrated the sector's solidarity and community support, reinforcing relationships with local communities. It also highlighted the imperative to more deeply integrate climate risk evaluation into project planning and operations, and reinforced the importance of effective and transparent crisis communication during and after a disaster.

Q: What defining legacy do you hope your presidency will leave at AIMMGM?

A: I want to strengthen AIMMGM’s position as a technical and moral reference for responsible mining in Mexico, while ensuring the sector’s continuous and sustainable growth. This commitment extends to the ongoing training of over 3800 professionals and technicians across our 37 districts in key mining states nationwide.

To uphold this legacy, we maintain constant, proactive dialogue with authorities, keeping communication channels open and constructive to influence public policy and the regulatory framework. We permanently promote responsible mining, highlighting and fostering best practices in safety, environmental care, and an extraordinary relationship with the communities where we operate.

We also heavily reinforce the training and education of our associates, boosting formation and update programs. Additionally, we foster innovation and the adoption of new technologies, aiming to include tools and processes that improve our industry's efficiency and sustainability. A key effort is defending legal certainty, protecting existing and future investments through a predictable legal framework.

We maintain ongoing engagement with society, implementing strategies to improve public perception of mining and communicate its benefits. Internationally, we strengthen ties with mining organizations for experience exchange and best practices, a commitment that will be tangible at our XXXVI International Mining Convention in Acapulco. Finally, we prioritize decentralization and regionalization, bringing the association closer to its associates in the country's different mining regions for improved experience sharing.

Q: Looking at the next five years, what challenges do you foresee for the Mexican mining industry?

A: The Mexican mining sector faces several challenges. These include regulatory uncertainty from the new Mining Law and its secondary laws, global competition for investment from countries with more attractive frameworks, and the increasing challenge of ensuring energy and water availability amid scarcity and climate change. Security risks in some regions also persist, alongside a scarcity of qualified talent across all mining areas. Furthermore, the industry must adapt production for the energy transition and the growing demand for critical minerals, while navigating the volatility of global metal prices impacting project profitability.

To prepare for and address these challenges, the sector is adapting to the new legislation by reviewing and adjusting operations. Companies are investing in sustainability through ambitious programs for environmental and water and energy management, and community relations to strengthen social license. 

The sector is also embracing innovation and technology through investment in advanced technologies and Artificial Intelligence (AI) to optimize processes, reduce costs, improve safety, and reduce environmental impact. In this sense, AIMMGM is pushing for aggressive personnel training and development plans to ensure the workforce meets the new sector needs. 

We are also promoting diversification and exploration of new deposits to ensure long-term viability. Collaboration and dialogue with authorities, communities, and stakeholders are being fostered to find solutions to common challenges. Companies are also strengthening their operational resilience to manage risks, including those related to climate change and security.

The Mexican Association of Mining Engineers, Metallurgists, and Geologists (AIMMGM) is rooted in Mexico's mining industry. With a history of active engagement spanning several decades, AIMMGM plays a significant role in facilitating cooperation and knowledge sharing among industry professionals.