Supreme Court Postpones Ruling on Mining Law Reforms

The Supreme Court of Justice of the Nation has ordered to postpone the resolution of conflicts of criteria and the review of appeals related to the reforms to the Mining Law approved in May 2023. Experts have warned that this delay increases uncertainty in the sector, especially for companies seeking legal certainty to invest and develop their projects.

Minister Lenia Batres explained that this is intended to prevent contradictory rulings while assessing the constitutionality of reforms to the Mining Law, the National Waters Law, the General Law of Ecological Balance and Environmental Protection, and the General Law for the Prevention and Comprehensive Management of Waste. According to the Official Gazette of the Federation (DOF), there are pending cases including an action of unconstitutionality, a constitutional controversy, and nine appeals in review that challenge these reforms.

"The process should continue until the resolution stage, and the issuance of the ruling should be postponed until this High Court establishes the respective criteria and issues the corresponding General Plenary Agreement," according to General Agreement 3/2024 of the Court's plenary session.

Jaime Gutiérrez, President, CAMIMEX, told MBN that the Mining Law has gone through several phases to adopt a more pragmatic approach, though it still presents challenges rather than facilitating industry growth. “The constant change in laws is also an issue. Just as companies were adapting to the Mining Law, new proposals like the ban on open-pit mining, which lacked any solid technical or logical foundation, were introduced.”

Experts note that while uncertainty around the Mining Law has increased, it also offers an opportunity to reconsider proposals. "The Supreme Court is putting a stop to the current situation, and it is time to find more sustainable and beneficial solutions for the country," an anonymous expert told Outlet Minero.

The Mining Law Reform 

The new legislation reduced the duration of mining concessions from a maximum of 100 to 80 years. The text also establishes that exploratory activities are reserved for the State through the Mexican Geological Service (SGM) or through assignments to entities of the federal public administration. 

On March 8, the Supreme Court published a binding ruling questioning 25 aspects of reforms to laws governing Mining, National Waters, General Ecological Equilibrium, and Waste Management. In addition, it granted a temporary suspension to protect the rights of companies with active concessions. The ruling directly affects federal judges in 18 states, particularly benefiting key mining regions in the north. 

To date, companies have filed over 500 amparos against the reform, arguing that their rights to legal certainty, legality, and legitimate expectations are being undermined by the reforms.