Supreme Court Confirms Constitutionality of 2023 Mining Reforms

By majority vote, Mexico’s Supreme Court ruled that the decree published in May 2023, amending the Mining Law, National Water Law, General Law on Ecological Balance and Environmental Protection, and the General Law for the Prevention and Comprehensive Management of Waste, does not violate the Constitution. The Court also rejected an injunction filed by a mining company seeking to suspend the implementation of these laws.

“The legal modifications … do not involve acquired rights in favor of the complainant company, but merely expectations of future rights, subject to compliance with requirements and approval by the authority,” explains the court’s statement. With this ruling, the court has effectively closed the legal challenge brought by the petitioning company, whose identity was not disclosed.

The court also upheld new provisions mandating that companies deliver to the Ministry of Economy any extracted minerals not specified in their concession titles. Additionally, the court recognized the authority of Congress to designate zones where mining is either permitted or prohibited and to regulate the use of water derived from mining operations.

Mining lawyer Alberto Vázquez told BNamericas that “the message has been clear since AMLO took office: the mining reform states that only the Mexican Geological Service (SGM) may conduct exploration.” He noted that another decree published in the official gazette further clarifies how this policy will be implemented. “The SGM is not required by law to reach access agreements. They place the obligation on the interested party to obtain the concession if a competition is held … and that, in practice, will be impossible.” He warned this policy threatens the viability of small and medium-sized mining companies and foreign investment.

Vázquez said the only remaining recourse may be a geologists’ injunction against the decree published, which restricts the right to work and to practice their profession except through the SGM.

Mining Under Sheinbaum

At the Mexico Mining Forum in Toronto, Fernando Aboitiz, Head, Extractive Activities Coordination Unit at the Ministry of Economy, stated that the legal framework governing Mexican mining would be clarified by mid-year, as the implementing regulations for the recent reforms have yet to be published.

Addressing concerns about the exclusive exploration rights granted to the SGM, Aboitiz explained that the government intends for mining companies holding existing concessions to continue independent exploration, while the State conducts its own exploration activities. However, he acknowledged that the government aims for greater state participation through the SGM in new concessions granted to private companies, seeking mutually beneficial arrangements. Further details on the application of the law and the bidding process are expected to be clarified in upcoming regulations.

Regarding new concessions, President Claudia Sheinbaum has reiterated that her administration, which ends in 2030, does not plan to grant any new mining concessions, particularly for open-pit mining.