Reshape of Environmental Law in Mexico’s Mining Industry

Q: What are the main challenges companies face in meeting Mexico’s environmental regulations, and how does Pontones & Ledesma assist. ?

A: Mexico’s Environmental Law was established in 1988 and since then numerous changes have undergone. One of the main challenges companies face, especially foreign investors, is their limited knowledge about these regulations and how to apply and implement them. Often, companies focus not on regulatory compliance, but on project development. Therefore, it is crucial to have specialized consultants to guide them from the beginning and so on to prevent future problems and/or liabilities.

Prevention is always more efficient and cost-effective than regulation mistakes. A corrective approach may involve fines, closures, and delays, which affect a project's viability. The costs and time required to solve irregularities can be considerable, placing financial pressure on investors.

The long waiting periods to obtain resolutions are also a problem. In some cases, the process can take six months or even a year, despite the deadlines set by law. To expedite these procedures, we have resorted to amparos and lobbying, which allow us to expedite the corresponding resolutions.  Companies must adapt to both political changes and the conditions of the country to ensure the successful development of their projects.

Q: What differentiates you from other firms specializing in environmental issues in the mining industry?

A: Our approach is tailor-made. We establish an extensive review and analysis of our clients' files, conducting audits and due diligence to understand their areas of opportunity. This allows us to accurately identify their performance and what they need to improve. Often, clients come to us after working with other consultants and wasting time and money due to inefficient approaches. Our distinctive is to provide comprehensive advice and offer realistic solutions.

A key aspect of our work is evaluating land use before clients invest in a property. We have seen cases where clients acquire land that later turns out to be a  Natural Protected Area, creating serious problems. Our preventive approach supports avoiding these situations and/or provides alternative strategies. Additionally, our work methodology is crystal clear and therefore effective. If a project is not viable, we mention it instead of creating false expectations. We do not sell illusions; we offer concrete solutions. Unlike other consulting firms that charge 100% of their fees upfront and then abandon the process, we structure our payments based on progress and project success which undoubtedly grants legal certainty and comfort to our clients. 

Q: How does Pontones & Ledesma tailor its approach to the specific problems?

A: Every project is different. Our experience in multiple sectors has allowed us to precisely identify the critical issues of each project. To ensure effective solutions, we conduct on-site audits across all regions of the country. Although our headquarters are in Mexico City, we operate in all 32 states, visiting each site and assessing real conditions in the field. This enables us to detect areas of opportunity and propose improvements before problems become major obstacles.

Our global vision allows us to compare Mexican regulations with international standards. At the global level, there are environmental agreements that set general guidelines for all signatory countries. However, compliance depends on how each nation incorporates them into its legislation. In Mexico’s case, environmental regulations have advanced, but there are still improvements that can be achieved in their implementation and enforcement. 

Many foreign companies entering Mexico already have stricter internal regulations than those required locally. This makes compliance easier since they must ensure 100% compliance with Mexican regulations. In some cases, state and municipal regulations can even be more demanding than federal ones.

Our preventive approach is key: we prefer to intervene early to correct possible liabilities and risks in the initial stages rather than dealing with corrective measures once they have reached a critical point. This contributes our clients to optimizing their processes and ensuring regulatory compliance from the outset of their projects.

Q: How should Mexico’s environmental regulations be strengthened, and what can be learned from international agreements?

A: Most International agreements function as soft law, as they are recommendations without mandatory obligations for the signatory countries. In Mexico, many of these guidelines have been incorporated into its legislation, but each country and each State adapts them according to its needs. For example, in the United States and Canada, environmental regulations tend to be stricter. 

In Mexico, regulation varies at the federal, state, and municipal levels. If the federal government does not regulate an Environmental issue, the state can do so, and if the state does not regulate it, the municipality can also intervene. 

Q: How are you adapting to the government’s approach, especially regarding regulatory issues like water?

A: The key is the ability to adapt. A consultant must know how to find solutions within the legal framework and adjust strategies when there are changes. The best thing to do is to think of multiple options and choose the best one based on a case-to-case project.  The law sets rules, but also exceptions, and that is where viable alternatives can be found. It is important to do things right to avoid legal conflicts.

The use of amparos has evolved. While they used to be less common, they have become a key tool to expedite Governmental Authorizations.  However, the priority is still to do things correctly from an initial stage.  We always explain the risks to our clients and offer them strategic options to move forward in the best possible way within the legal framework.  If everything is done correctly, a project should not end up in litigations and/or challenges. 

Q: What future do you see for environmental law in Mexico, particularly in mining?

A:  In general, it has been a tough time for the mining industry.  What entrepreneurs want is certainty. Environmental law is administrative and simple: if a project meets the requirements, it must obtain its corresponding permits.  It should not be up to anyone’s discretion.

Q: What are Pontones & Ledesma’s main priorities for the coming years?

A: We are active in various industries as we want Mexico to set higher Environmental standards and therefore clients implement them.   Mexico has amazing natural resources and a privileged geopolitical position. It is important to take advantage of that. Some entrepreneurs view environmental compliance as a cost when it is actually an investment. An environmental review may seem like an unnecessary expense, but in the long run, it saves money and prevents legal issues that could be extremely expensive.

Many companies already have in-house environmental teams, and we step in when there are specific or complex issues. However, it is key for companies to hire qualified personnel and continue their training.  Environmental Awareness is also crucial. We have spent years building an efficient, well-prepared team. Sometimes clients do not like what we disclosed to them from their projects, nonetheless, it is not a matter of what they want to hear, but explain the truth and guide them based on the applicable regulations, so companies can compete and evolve to the best of their abilities.

Pontones & Ledesma is a Mexican law firm that specializes in environmental and regulatory law. It provides comprehensive legal services to companies in industries such as mining, energy, infrastructure and any kind of  Industrial Activities focusing on compliance with environmental regulations and risk mitigation.