Discussions on Mexico’s mining law overhaul to begin today

Discussions related to the proposed overhaul of Mexico’s mining laws are set to begin today at the parliament’s lower chamber.

The Environment and Natural Resources Commission is expected to submit the draft opinion of the reform for discussion on Monday.

Submitted by President Andrés Manuel López Obrador’s administration on Mar. 28 to the Chamber of Deputies, the proposal aims to modify the Mining Law, the National Water Law, the General Law for Ecological Balance and Environmental Protection, and the General Law for the Prevention and Management of Mine Waste.

Among other things, this overhaul would shorten concession permits to 15 from 50 years and tighten rules for water permits. It would also require companies to give back at least 10% of profits to communities and to disclose mining impacts.

In addition, the proposal would forbid concession holders from expropriating land for mining and replacing land titles with monetary deals. In parallel, it establishes that the concession granting mechanism should operate through a public tender, and prohibits mining concessions in protected areas.

Even though the plan seems to be moving forward in the parliamentary process, the head of Mexico’s mining chamber issued a stark warning against it, saying it could cost the country some US$9 billion in lost investment in the coming years and up to 420,000 direct jobs.

Similarly, the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) issued a communiqué asking for the Lower Chamber to organize a town hall so that the 70 sectors that may be affected by the reform can better learn about its scope. Overall, the AIMMGM estimates that the mining industry is responsible for over 3.5 million direct and indirect jobs.

Mexico is the world’s top silver producer and one of the largest producers of copper and gold. The country also hosts lithium resources, which were nationalized last year by a presidential decree.