Mining Law Unviable in the Medium to Long Term: CAMIMEX

CAMIMEX stated that the Mining Law Reform includes provisions considered unfeasible in the short term and impracticable in the medium to long term. Particularly contentious is the provision restricting exploration for new mineral deposits exclusively to the Mexican Geological Service (SGM).

In CAMIMEX’s 2024 annual report, the Chamber emphasized that exploration requires substantial investment and expertise, often spanning several years to complete. CAMIMEX cautioned that allocating public funds to such high-risk investments could significantly impact public finances. “Over the past 12 years, the private sector has invested over US$7.6 billion in exploration, whereas SGM's 2022 program data showed only US$2.4 million invested—an amount 276.4 times less than the private sector's annual average.”

Looking ahead, CAMIMEX expressed the challenge of collaboratively establishing a new legal framework with authorities that fosters responsible investments in the mining industry. The chamber stressed the need to also restore rights to explore existing deposits and discover new deposits.

In 2023, total investments in Mexico's mining industry reached US$4.9 billion, with CAMIMEX projecting an increase to US$5.1 billion in 2024. "The recovery and growth of our sector heavily depends on improving conditions for investment certainty, supporting fiscal competitiveness and legal certainty, as well as strengthening mining exploration," Jaime Gutiérrez, President, CAMIMEX.

Mining Law

On July 11, the Supreme Court of Justice of the Nation ordered to postpone the resolution of conflicts of criteria and the review of appeals related to the reforms to the Mining Law approved in May 2023. Minister Lenia Batres explained that the delay is intended to prevent contradictory rulings while assessing the constitutionality of reforms to the Mining Law, the National Waters Law, the General Law of Ecological Balance and Environmental Protection, and the General Law for the Prevention and Comprehensive Management of Waste.