Navigating Mexico's Legal and Regulatory Landscape

In 2024, Mexico’s mining sector experienced a pivotal transition as leadership shifted from Andres Manuel López Obrador to President Claudia Sheinbaum. To the sector, the new administration signaled a willingness to engage in renewed dialogue on critical issues, including the open-pit mining ban and concessions. However, ongoing challenges persist, with regulatory uncertainty, a lack of clarity in the Mining Law, and the continued halt on permits hindering industry growth, according to Karen Flores, Director General, CAMIMEX.

“Mexico has gone through a complex period in terms of political and legal frameworks. One of the key challenges is achieving clarity in exploration, indigenous consultations, and community engagement, which must be clearly defined in upcoming regulations,” states Pablo Méndez, Partner, EC Rubio, referring to López Obrador’s proposals, such as the open-pit mining ban.

The proposal affects 60% of Mexico's mineral production and places over MX$30 billion (US$1.47 billion) in tax contributions at risk. However, since Sheinbaum stated that her administration would conduct a comprehensive review of the proposal, the outlook has improved. “Open-pit mining requires a comprehensive review, as activities such as sand extraction for cement production and lithium mining—key to national development—are carried out using this method. It is crucial to evaluate the details of the constitutional reform’s provisions,” the president asserted.

“We are at a key moment where regulatory agencies are more open to dialogue,” says Santiago Suárez, Partner, Servicios Legales Mineros S.C. He urged that by leveraging comparative legal analysis, mining companies can identify common ground to attract investment while maintaining environmental and community considerations.

Suárez also stressed that due diligence must be at the forefront of any regulatory and judicial change: “Compliance extends beyond traditional legal obligations. Indigenous consultations, environmental impact assessments, and transparent community engagement are now fundamental to securing long-term operations.”

Laura Díaz, Partner, DBR Abogados, highlights that incorporating ESG principles is becoming more an industry standard than a “nice to have” policy. “Bringing legal advisors into board-level discussions ensures that compliance and ESG policies are embedded into corporate decision-making from the start.”

Ensuring judicial certainty is also crucial to ensure investment in the sector, which in turn can uplift entire communities, thus activating the national economy, according to Méndez. For this to be successful, all players must participate in creating comprehensive regulations. “No one benefits from regulatory duplication. Concession holders must have the certainty that they can operate within a legal framework that supports their activities,” says Rubén Cano, Founding Partner, CR Legal. “Authorities have begun to acknowledge that this industry contributes to overall well-being, making it crucial to develop an appropriate regulatory framework.”

The approval of the judicial reform, which transitions Mexico’s judiciary from appointed to elected officials, has also impacted the industry. This shift raised concerns over its potential impact on mining disputes. “Concerns have been raised that judicial reforms could undermine judges’ independence, potentially making them more susceptible to influence from the government’s executive branch,” says Luis Chávez, Senior Vice President, Alamos Gold. Strengthening the rule of law and fostering a safer environment are critical to the sector’s, and the country’s, development, especially as President Sheinbaum’s Plan México targets economic growth, according to Cano. 

“A modernized regulatory framework, legal certainty, and a commitment to sustainability will shape the future of mining in Mexico,” adds Flores. “By fostering collaboration and maintaining high standards of compliance, Mexico’s mining industry can navigate challenges and seize opportunities for sustainable growth.”