Mining Law Temporarily Suspended

The Mexican Supreme Court decided to temporarily suspend the 2023 Mining Law. While the decision could benefit mining companies, which have expressed concerns about how the reform affects their existing projects and permits, the future of the mining industry remains uncertain.

On April 28, 2023, the Plenary of the Senate, composed only of MORENA senators approved the Mining Law. Among the main highlights of the reform were a reduction of mining concession times and the facilitation of permit cancellations. Opposition parties like PAN argued that the reform was unconstitutional as it was fast tracked without a proper debate. 

The mining reform represented a significant change in Mexico's mining sector, reflecting the government's efforts to exert more control over natural resources and promote fairer exploitation. However, it presented challenges for companies, potentially jeopardizing their operations under the new legal framework. Experts point that the resolution of this conflict will impact not just the mining industry but also Mexico's economic development and environmental policies.

Despite criticism, the Mining Law was published in the Official Gazette of the Federation, changing the panorama for the sector. The new legislation reduced the duration of mining concessions from a maximum of 100 to 80 years. The text also establishes that exploratory activities are reserved for the State through the Mexican Geological Service (SGM) or through assignments to entities of the federal public administration. 

On March 8, the Supreme Court published a binding ruling questioning 25 aspects of reforms to laws governing Mining, National Waters, General Ecological Equilibrium, and Waste Management.  In addition, it granted a temporary suspension to protect the rights of companies with active concessions. The ruling directly affects federal judges in 18 states, particularly benefiting key mining regions in the north. The Supreme Court of Justice of the Nation is set to deliberate on the legality of these reforms due to alleged procedural violations. 

To date, companies have filed over 500 amparos against the reform, arguing that their rights to legal certainty, legality, and legitimate expectations are being undermined by the reforms.