The Mining Law reform could be fought in Mexican courts due to a constitutional controversy since it generates uncertainty for investment, especially as it is not clear regarding the granting of concessions and the security of those already granted, according to PAN Deputy Felipe Macías Olvera. Macías emphasized that since the Constitution regulates private and public participation in the extraction of minerals such as lithium, the reform should not be able to exceed these provisions.
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President López Obrador announced that the lithium concessions previously granted to private companies will be reviewed to see whether they comply with all applicable procedures and regulations. Although the government did not clarify if concessions would indeed be eliminated, experts say that this will ensure further lawsuits against the administration.
After President López Obrador announced that granted lithium concessions will be reviewed, Ganfeng Lithium assured that the Sonora Lithium project mine is not in danger and remains on schedule for first production.
Mexico’s Association of Geologists and Mining Engineers (AIMMGM) reported that the lithium exploration the government aims to carry out involves higher financial risks than it should realistically want to tackle.
The National Confederation of Industrial Chambers (CONCAMIN) warned that the Mining Law reform will cause Mexico to lose important investments in 2022, further worsening its position as an attractive mining hub. The confederation stressed that if an attractive policy is promoted instead, Mexico’s economy could improve faster.
Americas Gold and Silver announced its operating results for 1Q22, as well as its production outlook for the rest of the year. The company said it expects its annual production to increase significantly in the coming months, especially as it will begin developing high-grade silver zones at its Mexican flagship project.
Bear Creek announced that it has completed the acquisition of the Mercedes gold-silver mine, formerly owned by Equinox Gold. Additionally, the royalty company that previously sought to cancel the agreement between Bear Creek and Equinox Gold withdrew its request for arbitration.
Consolidated Zinc announced to shareholders that on April 15, a group of armed intruders entered the Plomosas mine, located in Sonora, taking security guards and employees captive and stealing part of the mine’s zinc production. It is not the first time the company experienced such security issues.