Image credits: Matthew Henry
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Weekly Roundups

Electricity Reform Hits the Mining Sector

By Paloma Duran | Thu, 10/28/2021 - 14:56

CAMIMEX has warned that with the electricity reform, investment in mining exploration will be zero, which puts the future of the country at risk. In addition, the reform will force companies to buy dirty energy from CFE, making the sector less environmentally sustainable. Experts say lithium is an essential tool for the energy transition and for the government’s energy sovereignity policy.

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Investment Will Drop to Zero With Electricity Reform: CAMIMEX

If Congress approves President López Obrador's electricity reform that seeks to give the government exclusive control of strategic minerals, investment in mining exploration will be practically null, CAMIMEX said. Moreover, the lithium reserve figures that have circulated are not official, so the true potential of the country regarding this metal is unknown.

Electricity Reform Puts Sector’s Sustainable Progress at Risk

The recent electricity reform proposed by President López Obrador is an obstacle to the mining sector to move toward greater sustainability, CAMIMEX said. The chamber explained that if approved, mining companies would have to buy energy from CFE, which is neither clean nor efficient.

State-Centered Lithium Production Plan is Also an Energy Issue

Seemingly unrelated to other parts of the constitutional electricity reform proposal, the government included a provision that would grant it the exclusive right to extract lithium moving forward. At first glance, extracting the ‘white gold’ is a mining issue, yet lithium is firmly tied into the modern energy industry.

Leaders and Experts Challenge the Electricity Reform

Following the announcement that President López Obrador sent his electricity reform to Congress, analysts and mining leaders agree this will represent a new challenge for the industry, as it discourages the arrival of potential investments and new projects, and could provoke international disputes.

SGM’s New Program Aims at Official Data on Lithium Reserves

Between 2021 and 2022, the Mexican government will invest MX$55.2 million in lithium exploration, reported the Mexican Geological Service (SGM). The agency indicated that the objective of this investment is to have reliable data on the volume of reserves in the country and confirm if exploitation is economically viable.

Extractive Activities Must Be Restarted As Early As Possible

The Ministry of Economy, by way of its Head of Extractive Activities, has said that mining and extractive activities, through concessions, must be restarted as early as possible, notwithstanding the president’s official position.

The data used in this article was sourced from:  
MBN
Photo by:   Matthew Henry
Paloma Duran Paloma Duran Journalist and Industry Analyst