Redefining Strategic Due Diligence in Evolving Mining Frameworks

Following the Supreme Court’s June 25, 2025 ruling, Mexico’s New Mining Legal Framework is now fully constitutional and uniformly enforceable. While companies face uncertainties as they navigate the transition to the updated framework, the government emphasizes that the upcoming regulations are designed to address the concerns of mining companies, investors, and other stakeholders.

On May 8, 2023, Mexico enacted sweeping 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. Collectively known as the New Mining Legal Framework, these changes marked the most significant transformation in the sector in over decades.

The reforms redefined concession-granting processes, shortened concession durations, linked approvals to water availability, and made prior consultation with Indigenous and Afro-Mexican communities mandatory. They also introduced stricter rules for transferring concessions, established financial obligations for environmental compensation, and created new causes for cancellation with potential criminal penalties.

Following the reforms, several companies and individuals challenged the legislation through amparos, claiming it violated acquired rights and had been enacted through flawed legislative procedures. The case ultimately reached the Supreme Court, which on June 25, 2025, issued a ruling in Amparo en Revisión 391/2024. The Court confirmed the reforms are constitutional and enforceable, revoking a lower court decision and ending the dual system in which some concession holders operated under suspensions while others followed the new rules. The ruling establishes that the New Mining Legal Framework now applies uniformly to all concession holders in Mexico.

The Court clarified that mining concessions are “administrative acts of mixed nature,” combining essential clauses that constitute acquired rights with regulatory clauses that remain subject to change. Acquired rights include the term of the concession, the authorized type of activity (exploration, exploitation, or both), and the specific mining lot and minerals permitted, elements that cannot be modified without due process. Regulatory clauses cover obligations such as water use, environmental responsibilities, approval of transfers, and conditions for extending concessions. These rules can evolve without infringing on acquired rights, reflecting the state’s authority to regulate resources and protect public interests.

For concession holders, this distinction has practical implications. Exploration and exploitation rights remain intact, but holders should review their titles to confirm the specific type of concession. Water usage now requires a separate industrial-use concession, as preferential rights have been eliminated. Transfers must be registered and approved by authorities rather than relying on private agreements. Financial guarantees for environmental restoration are mandatory, and mining in protected areas is prohibited. Rights related to expropriation or temporary land occupation are no longer automatic and require administrative approval. The Court emphasized that these measures serve broader public interests, including environmental protection and sustainable development.

The SCJN also affirmed that the reforms do not violate the principle of non-retroactivity, as they affect only regulatory conditions and not the essential elements of concessions.

“This resolution has produced the reality that we need to accept and work together accordingly. The New Mining Legal Framework passed in May 2023 is now the only effective and constitutional legal framework for our mining concessions,” said Ruben Cano, Founding Partner, CR Legal. “Keeping concessions valid is paramount, including complying with all obligations in Art. 27 and avoiding any cancellation causes outlined in Art. 42 of the new Mining Law.”

Ongoing Policy Updates and Government Initiatives

In March 2025, Fernando Aboitiz, Head of the Extractive Activities Coordination Unit at the Ministry of Economy, highlighted at the Mexico Mining Forum PDAC that an upcoming regulatory framework aims to address concerns raised by mining companies, investors, and communities. “It seeks to streamline administrative procedures, enhance transparency, and improve engagement between the industry and local communities. By reducing bureaucratic bottlenecks and providing clearer guidelines, the government hopes to attract renewed investment while upholding high environmental and social standards,” said Aboitiz.

A key element of the new mining policy is social certification. Aboitiz emphasized the importance of transparency and accountability, noting that past administrative halts were largely due to the lack of structured mechanisms for community engagement and environmental responsibility. This aligns with global trends in responsible mining, where companies must demonstrate sustainability commitments.

The strategy also aims to revitalize exploration efforts to ensure the sector’s long-term viability through the discovery and development of new mineral deposits. All new exploration must be coordinated with the Geological Service of Mexico to meet national standards and support efficient resource development.

To support this agenda, the government is developing a public-private partnership (PPP) model that will redefine mining project structures. Under this approach, the private sector will lead initiatives while the government provides regulatory oversight, balancing economic development with responsible governance and fostering stronger collaboration between companies and authorities.

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