Mining Leaders Hope New Economy Minister Reactivates Concessions

The new Minister of Economy, Raquel Buenrostro, could put an end to the government's policy of withholding new mining concessions, Grupo México said. The company explained that although the rule has not had a severe impact on operating companies so far, it will be disastrous for the industry in around 15 years.

Grupo México believes that after Economy Minister Tatina Clouthier presented her resignation and was replaced by Buenrostro, the former Director of the Tax Administration Service (SAT), the government might alter its stance on concessions. Several executives of the company believe Buenrostro will be more open to dialogue than Clouthier was, reported La Politica Online.

Grupo México said that the government’s policy is a threat to the industry, as a lack of exploration will eventually lead the industry to come to a grinding halt. “The rule on mining concessions has not affected us. This rule is manageable in a period of six years, the term of a federal administration, but if it goes on for 12 or 18 years, it becomes a death sentence,” said Alfonso Martínez, Director of Exploration, Grupo México.

López Obrador has repeatedly said no new concessions will be granted, claiming that previous governments heedlessly authorized too many concessions, especially to foreign companies. Representatives of the mining industry have sought to work with the federal government to reactivate the granting of mining concessions. However, the government has stood its ground.

Former CAMIMEX President Fernando Alanis has stated the government severely misunderstands the mining industry since by granting a concession it does not yield Mexico’s resources to companies, merely the possibility of carrying out exploration programs. In addition, Patricia Vivar, Mining Specialist, VHG, said the administration misinterprets the role of foreign mining companies in the country, as most concessions have been granted to Mexican mining companies like Peñoles and Grupo México.

According to CAMIMEX, there are 24,066 concession titles representing 16.83 million ha in Mexico, equivalent to 8.59 percent of the national territory. In addition, production-stage mines occupy less than 0.10 percent of the territory.

Who is the New Minister of Economy?

Previously, Buenrostro worked at the Ministry of Finance and other government agencies such as PEMEX, SEGOB and SECTUR, among others. In politics, Buenrostro is known as Mexico’s "iron lady" for her strong character and firm decision-making. According to government data, SAT has collected more money under her watch. As of Sept. 30, 2022, the country's revenues were MX$3.617 billion (US$180.3 million), 3.6 percent higher than 2021’s figures.