Mining Commission Ensures Legislative Clarity

Q: What do you think of the current development of the Mexican mining industry?

A: I see an industry with capacity and potential. However, it is necessary to create conditions that provide investments with greater certainty, including federal and state-level miningrelated legislation. In this sense, I am pleased that President Peña Nieto has already created the Mining Undersecretariat, which should oversee guidelines, procedures and a general policy that directly relates to Mexican mining. The development of this industry empowers us to occupy a competitive position on the international stage. In addition, it is necessary to take advantage of the competitive advantages given to Mexico by its trade agreements with the countries of the Pacific and Europe.

We must analyze the challenges from multiple perspectives, among investors, operators, workers, mining communities and government players. We should all accept the challenge to develop of the Mexican mining industry, firstly to increase the country’s efficiency and secondly, so that this efficiency is translated into the country’s development and benefits for our citizens. Today, we know that it is necessary to create better conditions for mining exploration, hence our commitment to an initiative to reinstate the deductibility of preoperative exploration expenses. We continue to lobby for the inclusion of this policy to be considered within the 2018 revenue package.

Q: What is the state’s responsibility to promote the Mexican mining sector, both nationally and internationally?

A: I am certain of one thing: the sector is too important to jeopardize. It generates jobs in remote regions, it attracts foreign exchange, it contributes to the GDP and today in Mexico it also makes direct contributions to the development of our people and communities through the Mining Fund. 

Certainly, the sector is not going through the best time but it is likely that it will regain strength due to the status of commodities as an investor refuge from uncertainty. Gold prices rose almost 8 percent in 2016 due to the fall in crude oil prices and losses on the stock markets, factors that support the demand for assets considered as safe haven.

The responsibility of my state as a leader in production, projects, concessioned land and investment attraction lies not only in the data but also in the way other states behave. Governor Claudia Pavlovich has made it clear that we must take great responsibility for our rich minerals and projects. I am greatly motivated to ensure the transparency of the Mining Fund, since to date Sonora is also the leader in attracting those resources with more than MX$2 billion. The communities give life to the industry and that translates into optimization and strong operation of projects. My work is not limited to governmental responsibilities but I have also been working as a liaison between companies and towns. For this reason the responsibility of a state like Sonora lies in the example we can provide.

Q: Why was the Mining Commission created and what are its short and long-term objectives?

A: The importance of mining activity cannot be denied, given its significance to Mexico’s economic, social and environmental life so it is necessary to dedicate the appropriate resources to the industry. The mining sector in Mexico has been and is crucial for the development of our country. Mexico is a world leader in silver production and is among the top 10 producers of 19 minerals. For this reason, in recent years, legislative analysis on the subject of mining in Mexico has generated intense debates and as a result, the Mining Commission was created.

As for the short and long-term goals, we are in the penultimate year of the administration so we are making plans to standardize the commission, which will allow us to make more long-term plans. Another objective is to strengthen the links between state authorities, investors and executives in the sector to boost mining and standardize criteria. We want mining as a theme to be incorporated into the agenda.