New Mexican mining regulations take effect

The regulations of the Mexican Mining Law went into effect at the end of March. According to the Ministry of Energy, Mines and State Industry (SEMIP), the new regulations eliminate 60 requirements that had to be complied with under the previous rules.

The new regulations also do away with 19 administrative steps dealing with ordinary mining concessions and 34 that had already been eliminated involving special concessions.

The document establishes a single procedure to receive, process and make decisions on most mining paperwork. As a measure in support of small- and medium-scale mining, it determines the contents of the development programs of those sectors, it provides for responsibilities to be assumed with regard to meeting the safety standards in mines and it exempts them from having to submit different verification reports when the works involve mining areas smaller than 100 hectares.

In addition, it relieves companies from the relevant administrative obligations by considering all exploration and mining works executed through Dec. 31, 1992, as having been proven.

In general terms, SEMIP pointed out that, with the new regulations, one of the general objectives of the 1990-1994 National Mining Modernization Program has been achieved. This work consisted of reviewing mining legislation and updating it to boost development and obtain higher rates of profit. In this same context, President Carlos Salinas de Gortari announced, near the end of March, important support measures for small-scale and co-operative mining enterprises.

Thirty-five million new pesos will be channeled to the exploration of mining projects, enterprises under the “Solidaridad”or Solidarity Program, and the Mineral Resources Board.

With the participation of the Mining Promotion Trust Fund and banks that support it, 130 million new pesos will be allocated to support mining operations that can be economically worked.

Also, 700 million new pesos will be available to make it possible to carry out projects that had previously encountered difficulties in financing. With the new Mining Law and its regulations, the mining industry in Mexico now has an up-to-date legal framework that will enable it to increase private investment and take better advantage of the country’s enormous potential. — Submitted by the Mexican Investment Board, Mexico City.