Sheinbaum Demonstrates Openness to Dialogue: Newmont

Newmont stated that Claudia Sheinbaum’s government demonstrates openness for dialogue regarding the proposed increase in mining royalties and the open-pit mining ban. CAMIMEX has emphasized that the approval of any of these reforms would impede billions of dollars in investments over the coming years.

Ana López, Mexico Unit Manager, Newmont, stated that the company will comply with the law if the royalty proposal moves forward. However, she emphasized the openness for dialogue from the Sheinbaum administration. "From the companies' side, there is strong interest and commitment to continue investing in Mexico. I believe the opportunity at hand is to create the best conditions in terms of certainty and collaboration so that we can continue to invest," she said.

López also highlighted that Sheinbaum’s willingness to review a proposed legal reform by the ruling party to ban open-pit mining demonstrates her openness to dialogue. "This openness to analyze these issues based on information and technical data is positive, not only for the mining sector but also for the private sector and the government," López said.

Proposals on Royalties, Open-Pit Mining Ban

The Ministry of Finance (SHCP) recently announced revisions to special and extraordinary mining duties, raising rates from 7.5% to 8.5% and from 0.5% to 1%, respectively, effective 2025. These adjustments, according to the SHCP, are intended to align with global trends in rising mineral prices and to ensure fair contributions from those deriving benefits from these resources. According to CAMIMEX, the proposed increase in mining duties in Mexico could put over US$6.9 billion in projected investments at risk over the next two years. 

The proposed ban on open-pit mining, introduced by former President López Obrador, has faced opposition due to its potential economic and employment impact. Open-pit operations account for 60% of the value of Mexico's national mining and metallurgical production. CAMIMEX has cautioned that such a measure could lead to a 1% contraction in GDP and place approximately 200,000 jobs at risk.