Mining Law: Insights, Inquiries, and Prospects

Q: What are your expectations regarding the Mining Law and its recent amendments? 

A: The recent amendments to the Mining Law, as well as environmental regulations, have significantly impacted the industry. These changes have restricted concession grants, leading to limitations on exploration activities, now monopolized by the federal government. Consequently, mining companies are unable to conduct exploration, prompting numerous legal challenges. Moreover, the scarcity of permits has stalled numerous mining projects. We remain hopeful that the courts will uphold the unconstitutionality of these actions and rule in favor of mining companies.

Q: What are your mining clients most concerned about?

A: Clients are primarily looking for clarity and transparency on land-related issues. They ask about the use of surface land in conjunction with mining concessions, which often requires additional permits. They also ask about transferring mining concessions and obtaining financing. Information on the duration and requirements for obtaining permits and authorizations from the Government is also an important question. They also ask what is the optimal approach to engaging communities to ensure mutual understanding and adherence to best practices.

Our recommendation for clients is to collaborate with state and local governments. Direct communication channels with communities can provide valuable information to establish lasting relationships based on mutual benefit and understanding.

Q: What sets your mining law firm apart from others in Mexico?

A: Our firm stands out due to our profound industry knowledge and specialized expertise in mining law. While numerous law firms operate in the country, few possess our depth of understanding of the intricacies of the mining sector. Our versatility extends beyond specific regions because we possess comprehensive knowledge of mining practices in various states in northern, central, and southern Mexico. Our firm's diverse portfolio of clients across multiple industries enhances our ability to provide comprehensive and tailored legal services.

Q: What are your expectations for the relationship between the mining industry and the government?

A: Clients often ask about the future of the sector amid political transitions and security concerns. Regardless of the outcome, it is imperative that the government understands the importance of the mining industry in Mexico. There is an urgent need to dispel misinformation and reconsider proposals to amend the Mining Law, which are often politically motivated. While the current administration's strict approach has posed challenges for mining companies, the next government is expected to take a more favorable stance toward the industry, regardless of party affiliation.

Cereceres is a legal firm with over 25 years of experience in providing services to a wide range of national and international companies.