Mining Law Reform Approved in Congress
Even though experts have warned about the consequences the reform to the Mining Law could have on capital outflow, investment and international commitments, Congress approved it this week. The Lithium project recently acquired by Bacanora is being paused. Leading expert to believe there is certain degree of difficulty in exploiting Mexico’s deposits.
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Production of Mexico’s Main Private Lithium Project Postponed
Bacanora Lithium has announced that its first lithium production will be a year later than previously planned. Although the company did not explain the reasons for the delay, experts say that it may be due to the difficulty of exploiting the deposits in Mexico. In addition, industry insiders believe that a reform of the Mining Law could further delay production.
Mining Reform May Cause Capital Outflow, Discourage Investors
Experts warn about a possible outflow of capital caused by the Mining Law reform. Another consequence is the discouragement of potential investors. Patricia Vivar, Founding Partner, Tete a Tete Consultores, argues that the government has attacked and disqualified the mining sector to the point that companies prefer to invest in other jurisdictions.
Reform to Mining Law Would Violate USMCA
Reforming the Mining Law to nationalize lithium and declare it as a strategic mineral exclusive to the state would violate the United States-Mexico-Canada Agreement (USMCA), said Kenneth Smith, a key negotiator for the treaty.
Reform to Mining Law Is Approved, State Now Controls Lithium
President López Obrador's new initiative to reform the Mining Law, which sought to nationalize lithium and ensure state control over the resource, has been approved after reaching a simple majority in Congress.
Energy Reform Could Scare Away Investment: CAMEXLI
The Mexican Chamber of Lithium (CAMEXLI), consisting of companies that market, refine and manufacture lithium products and are key to the creation of a state-owned lithium company, warned that the energy reform could scare away the investment needed to boost the lithium industry.
Only Eight Companies Produce 88 Percent of Mexico’s Gold
According to a report from the Ministry of Economy dated Sept. 13, 2021, just eight companies carry out 88 percent of Mexico’s gold production. Similar trends where a handful of companies dominate the market can be observed in the production of silver, copper and zinc.
Torex Gold Ore Recovery Expected to Ramp Up in Remainder of 2022
Torex Gold announced that it saw solid operations and sales during 1Q22 and expects to improve further during the rest of 2022 as it will recover more ore after a transition to different areas in the El Limón Guajes (ELG) open pit.
Zacatecas Silver Acquires an Important Gold Project
In a press release, Zacatecas Silver announced it has completed the acquisition of the advanced-stage Esperanza Gold Project, located in the state of Morelos, as well as the acquisition of its shares by another important mining company in the country.
Altaley Mining Will Soon Start Production at Tehuehueto
Altaley Mining announced that the key infrastructure needed to start production at its Tahuehueto project in Durango is nearly complete. The company's project is expected to be producing at full capacity between 2Q22 and 3Q22. Meanwhile, at its Campo Morado project in Guerrero, an extensive metallurgical testing program will be completed during 2Q22.