Regulatory Compliance Requires Experienced Partners: BCMex

Q: What does Business Consultants Mexico (BCMex) offer to the mining sector? 
A: We have an extensive service offer, ranging from taxes, administration of mining units, customs brokerage, logistics, HR, and accounting services. We are a family business that has over 50 years of history. Initially, we focused more on consulting in accounting, tax, and general administrative matters but as my siblings and I specialized in different fields, we added services to the firm. 

Q: In which areas of the mining sector is BCMex mainly involved? 
A: We are primarily engaged with companies that are closely related to the mining sector, such as engineering services providers for pit development, ramp construction, shaft development, and environmental and water advisory services. Some of our clients are mining companies. We have worked with companies that may not be initially well-known in the sector, but over time became involved in important and interesting projects. We worked in Pan American Silver’s Corner Bay mine in Maquipo, Sonora, which had a lifespan of eight years and was a significant project at that time. We organized and managed it throughout its exploration and development phases.

We also participated in a project now managed by Grupo México near Santa Cruz, Sonora, close to Cananea and Nogales. Although we are not heavily involved with Grupo México, we worked with the previous owners. We also worked on the Lluvia de Oro project and many others.

Q: What is your main contribution to the companies you serve? 
A: The most important task we perform is the legal constitution of the corporate entity that will hold the mining concession. After the entity is established, we support the exploration phase, which typically lasts from five to 10 years until reserves are clearly defined for production. During this phase, we provide support on administrative, logistics, HR, and tax matters. Once the mine is operational, the company usually hires its own staff. 

We also assist with land remediation services, as we have a client that includes this feature as part of its services after the production phase concludes. We used to provide personnel services, but stopped after a subcontracting reform in 2021. We now assist exploration companies in managing their HR processes, including hiring, contract termination, training, safety, and hygiene. We advise on compensation strategies and benefits and manage all payroll-related tax matters. We also handle the labor relationship, serving as advisers and sometimes executing decisions. For example, if a company needs to negotiate an agreement to halt operations due to a lack of capital, we step in to negotiate directly with the affected personnel.

Q: What key factors should mining companies consider when navigating Mexico’s business environment?
A: Concessions are a pressing matter. This administration is not authorizing new concessions and has left all applications untouched. Therefore, it is key to keep an eye on the expiry dates for concessions. The length of concessions has also been reduced. Thus, companies must be careful of expiration dates and taxes. Mining companies must be diligent in this matter to avoid having their concessions canceled. Companies also need to be diligent on taxes because they can snowball. If companies are not in good standing with the tax authorities, they can face severe legal and financial problems.

Q: How does BCMex expect the mining sector to evolve in the short term? 
A: The government must change its views on the mining sector because this administration has not viewed the industry favorably, making it a challenging time for the sector. For example, one of our clients, a drilling company, is expanding to Central and South America because it does not have much work in Mexico. The government should change its vision and see the sector as an ally, as it comprises people who come to do business legally and correctly. The sector pays taxes, employs many people, and supports the communities where it operates.

Q: How does BCMex plan to participate in this business environment? 
A: Like many companies in the sector, we aspire to maintain what we have. This has led us to look at other sectors that may be related to mining but are not being affected by regulations. These sectors include manufacturing and service providers.

In the mining sector, we are not expecting significant advances but we are hopeful that the next government will change its outlook. The sector must ally to alter the negative perception held by many and demonstrate that it is not a threat; rather, it operates responsibly and benefits the community. We pay taxes, create jobs, and collaborate with communities to generate shared value.
 

Business  Consultants Mexico (BCMex) provides advisory and service support to foreign companies seeking to do business in Mexico. Its team assists clients in the mining sector, offering expertise in legal, accounting, tax, HR, and international trade.