A few days ago, the Mexican Senate approved a series of reforms to the Mining Law. These modifications limit and regulate the granting of concessions for the exploitation of minerals in the country, eliminate mining as a preferred activity over any other use or exploitation of the land, and oblige companies to carry out consultation processes with the towns and communities. in which they wish to establish their activities.
In the absence of the Executive branch publishing the modifications in the Official Gazette of the Federation, the new Mining Law in Mexico is a reality. A proposal that, according to the State, aims to limit and regulate the granting of concessions for mineral exploitation in addition to forcing companies to carry out consultation processes with the towns where they wish to establish their activities.
“Damages trust”
However, this law worries the current mining union: “Is a mining law with which we have been working. However, our surprise is that there were no consultations with those of us who do mining and with those who make a living from mining, and that led to these situations that cannot be fully liked by the entire Mexican mining sector,” he said. explains Raul García Reimbert, president of the College of Mining Engineers, Metallurgists and Geologists of Mexico.
“It damages, first of all, the confidence that the investor and the miner should have. The small miner, the medium miner must have confidence and certainty that they will be able to work a mineral deposit without the Mexican State having to decide on many aspects, including whether it is a project that may be geologically viable or not. The Mexican State cannot be the arbiter of geology. And also for the communities where we settle, whether or not there will be growth in the mining industry”, estimates García Reimbert.
“I speak on behalf of the responsible mining industry. For few who do not do responsible mining, we pay many, many. About 85, 90% of mining is responsible mining,” she stresses.
foreign investment
The new reform that includes reducing the concessions to 15 years worries foreign investors. Mainly to Canada, which represents the largest investment in the mining sector outside the country: “In Mexico have around of a Four. Five% of the investments in mining that are of origin Canadian and they would invoke some failures that could to have in the law. I No I think that to the day of today must of to have cumshots of companies foreigners, neither to they themselves them it suits. Besides, none law is retroactive, so the most of the mines now are working, and the next exploration, already the will with a regulation new, such as this the law today. Without a regulation appropriate, can be disruptive in the investments foreigners”, explains García Reimbert.
The project approved by the deputies changes the name of the Mining Law to the Mining Law, sets aside exploration activities as reserved to the State, allowing concessions in mining reserves by presidential decree, among other changes.
