Technical Consultations on Mining Reform to Start Soon

Technical consultations are being prepared together with the Mexican and Canadian governments and their mining industries to discuss the Mining Reform. Industry leaders hope these consultations will clarify legal issues related to controversial changes following Congress’ rapid approval.

The meetings were proposed by Canadian Minister of Foreign Trade, Mary Ng. Mexico's Minister of Economy, Raquel Buenrostro, plans to travel to Canada for the meeting. CAMIMEX is expected to represent the Mexican industry at the meeting, while the Canadian Chamber of Commerce in Mexico CanchamMX will represent Canadian companies. According to experts, the four months to draft regulations have already passed, so industry input is expected to be gathered soon.

Opposition to the Mining Reform has intensified in recent months. Legislators have filed an action of unconstitutionality to suspend the Mining Law, as they claim it violates the congressional process. Meanwhile, several mining companies have filed judicial appeals against it.  First Majestic Silver became the first company to obtain a provisional injunction against the Mining Law Reform. The provisional suspension is the first of many legal disputes expected from other mining companies affected by the reform. 

"The power of this unconstitutionality action is that, if the Court by a majority of eight comes to the conclusion that there were important violations in the rules of the administrative procedure to approve the reform, this could invalidate the reform in its entirety,” an anonymous constitutional lawyer told BNamericas.

The Mining Law Reform was approved by Mexican Congress in late April and published in the Official Gazette (DOF) on May 9, 2023. The reform has spread uncertainty in the mining sector. At the time of writing, legal experts said that at least 10 mining companies are presenting or preparing to file injunctions against the new law. Initially, these are against self-enforcing provisions, which by the mere enforcement of the law are already applicable and, therefore, represent a grievance. “If you do not present an injunction request regarding these self-applicable provisions, you, as a company, lose your right to contest the provisions," an anonymous legal expert told BNAmericas. 

In an interview with MBN, Gabino Fraga, Director General, Grupo Gap, said that the reform is complex and controversial since it was made under murky conditions. “[The reform] may be unconstitutional due to the process in which it was voted on, as Congress did not comply with the protocols that the Constitution states for modifying laws and for having the legal quorum to do so,” explained Fraga.