The Green and Blue Challenge in Mining Projects

With energy and water as critical inputs for mining, their management has increasingly become a source of legal, regulatory, and social scrutiny. Mining companies in Mexico now operate in a landscape where sustainability, regulatory compliance, and social acceptance are essential for competitiveness.

According to EJAtlas, an initiative documenting environmental justice cases, out of 628 global conflicts linked to mineral exploration or extraction, 355 cite water as a central or secondary point of contention. “Water management is no longer incidental in mining—it is central to operational sustainability and social acceptance,” Santiago Suárez, Partner, SLM, told MBN.

Historically, Mexico’s National Water Law did not differentiate mining from other industrial activities. Reforms in 2023, however, updated the Mining Law, the National Water Law, and related environmental legislation. The revised National Water Law establishes a separate concession regime for mining, including measurement of extracted volumes, a prohibition on using water to transport mining materials, and a maximum 30-year term. “These rules are clear: non-compliance can suspend operations, making proactive water governance critical,” adds Suárez. Art. 19 also requires water use for mining activities to be notified to the National Water Commission (CONAGUA) and that corresponding water duties be paid. Additionally, concession holders must implement measures to reuse at least 60% of water and prevent pollution.

Global standards have influenced Mexico’s reforms, including the UN Resource Management System (UNRMS), OECD guidance on stakeholder engagement, ISO 14046 for water footprint assessment, and ICMM recommendations on transparency and efficient water use. “Mining operations that proactively integrate legal compliance, technical solutions, and community engagement will not only secure permits but also reinforce their social license to operate. This is how water stewardship becomes a competitive advantage,” states Suárez.

Currently, mining accounts for only 0.27% of authorized national water consumption, while the industry recycles approximately 70% of its water through advanced treatment systems, according to CAMIMEX.

Energy: Powering Sustainable Mining Operations

Energy is required at every stage of mining, from exploration to refining. Globally, the mining and metals sector accounts for approximately 4–7% of total greenhouse gas emissions. In Chile, copper mining alone contributes around 30% of national emissions, while mining in Australia represents roughly 10% of the country’s total emissions. Mining’s carbon footprint is largely driven by Scope 1 (direct operational emissions) and Scope 2 (indirect emissions from electricity use), while Scope 3 emissions, from supply chains, product life cycles, and transportation, pose measurement challenges.

The industry has responded with ambitious sustainability goals to reduce its carbon footprint. In 2023, 35% of mining’s energy consumption in Mexico came from renewable sources, including wind (14.1%), hydro (1.3%), solar (0.4%), and renewable cogeneration (9.7%), with targets to reach 46% by 2030.

“Mining companies adopt sophisticated energy strategies to meet these targets, relying on Power Purchase Agreements (PPAs) and on-site generation,” said María José Treviño, Country Manager, Acclaim Energy. 

Given the carbon intensity of Mexico’s grid, companies increasingly seek alternative energy sources. While standard Qualified Supply contracts last three to five years, mining firms often negotiate longer-term deals of 10 to 20 years to hedge against price volatility and secure renewable supply. Current PPAs in Mexico can reduce energy costs by roughly 15% compared to regulated tariffs.

For remote operations, on-site generation, historically diesel-based, is shifting toward solar, wind, energy storage, and, in some cases, green hydrogen. Globally, renewable energy PPAs for mining total approximately 32TWh annually, with only 1.9TWh produced on-site. Combining PPAs with on-site solutions often represents the most effective strategy, though these projects require careful regulatory and financial planning.

Mining Driving the Energy Transition

Beyond energy use, mining plays a pivotal role in the clean energy transition. Minerals such as lithium, nickel, and graphite are essential for renewable energy technologies, energy storage, and electric vehicles. The International Energy Agency projects that more than one-third of global electricity will come from renewables by 2025, while the World Bank estimates production of critical minerals could rise 500% by 2050.

“Sustainability is no longer optional for mining companies. By embracing innovative strategies and clean technologies, the industry can reduce its environmental footprint while continuing to power the global and local economy,” said Treviño.

In Mexico, several critical minerals such as copper, silver, nickel, and gold are attracting increasing attention. However, in recent years, lithium has emerged as one of the most discussed resources. The country’s estimated lithium reserves stand at 1.7Mt. Although this figure is lower than that of other Latin American nations, experts suggest that, if economically viable deposits are developed, Mexico could position itself as a relevant lithium producer. Currently, the country hosts 82 lithium deposits across 18 states, including 13 in Sonora, 12 in Puebla, nine in Oaxaca, and others spread across different regions.

Recently, Víctor Rodríguez, Director General, PEMEX, announced that the company will collaborate with the Ministry of Energy and LitioMx to explore the lithium potential found in oilfield brines. He explained that high concentrations of lithium—comparable to those in Bolivia—have been identified during oil drilling operations, particularly in fields such as Jujo-Tecominoacán. These brines show lithium levels above 100ppm, opening the possibility of producing lithium by leveraging existing oil infrastructure. “This could allow lithium extraction without the need for independent exploration efforts,” Rodríguez noted.

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