Renewing the Face of the Mining Industry

Q: What are the main issues that the association will try to negotiate with the López Obrador administration?
A: First, we will ask the president to give us the opportunity to show him the reality of the mining industry. I believe the industry’s image has been battered and damaged by bad information. It is necessary to understand all the benefits that mining provides for the country’s development. In recent years, the industry in Mexico has been placed at a disadvantage compared to other countries due to issues like the tax burden, legal certainty for investors regarding land ownership and the lack of security. All this could be different if the existing perception about the sector is changed.
Q: What mechanisms does the association have to change that perception?
A: Last year we organized our first forum on the industry and we plan to organize more over these months in the main mining states. We also have reinforced our presence in networks to offer information to society. There are even people who think that the industry should disappear and they are not aware that everything around them comes from mining. The association is formed by professionals who want the best for the industry regardless of where they work and that positions us to speak with certainty about specific issues.
Q: What role should the association play to achieve the highest standards in the training of talent that helps the growth of the industry?
A: The association has scholarships and agreements with the main mining schools in the country, such as the Autonomous University of Pachuca, where each scholarship we grant is matched by the university. These scholarships are funded with the association’s own resources.
We are also working to see how curricula can be adapted to the needs of the industry. The most relevant cases are the update of various specialties, mines, metallurgy, and geology for the design, investigation, and reserve calculations including finance and operational costs. Another study is also being done between the job demand and offer of the sector, to find an equilibrium of graduates from the different universities.
Universities have been set up to educate engineers in many communities near the mines but what the industry needs is skilled, technical and specialized labor, not engineers. We need people in the middle level of the chain.
Q: If there is the possibility to implement a mining reform, what topics are essential for the association?
A: Mexico is not as attractive for mining investment as it was a few years ago, so the country needs a reform that addresses this situation. Mexico has many resources but if we do not face our difficulties and provide clarity to investors, they will be hesitant to continue coming to Mexico.
An example is the Law of Indigenous Consultation, which is very open to interpretation; in this case, it would be necessary to clearly define every element of the law because without clear guidelines doubt will persist. The mining industry in Mexico needs a consensual change. We are in favor of that change as long as it is positive for all parties involved; however, I am not optimistic that any mining reform will have the depth required to develop the sector.
Q: What is your view of the Mining Fund?
A: I have always believed that all processes can be improved. The way in which the Mining Fund was being distributed needed some adjustments but nothing as extreme as those proposed by the new administration. The adjustments are necessary but it is also true that this fund, as can be seen in many municipalities dedicated to mining, worked very well. Modifications can be made but not so drastically.