Banning open-pit mining could cause spike in illegal activity

Along with putting investments at risk, Mexico's proposed ban on open-pit mining could raise crime in mining communities due to the higher likelihood of illegal mining operations in these areas.

"Banning it is a mistake. Human behavior being what it is, prohibition often leads to additional problems," says David Betancourt, the founder of Mining Risks Advisors (MRA) and a security consultant for the mining sector.

"There is already a significant problem with illegal mining, which isn't widely discussed" because it remains small-scale and is often referred to as artisanal mining, Betancourt tells BNamericas, adding that current metals prices have made illegal mining highly profitable, attracting the attention of organized crime.

If mining is banned in an area, "criminal groups will take advantage of the situation. This will create serious social problems in already neglected areas, which are vulnerable to many dangers. Imagine these places without security or territorial control," he added.

In mid-August, the constitutional committee of the lower chamber of congress approved the executive branch's proposal to ban open-pit mining. The proposal was initially introduced in February by outgoing President Andrés Manuel López Obrador as part of a package of 20 constitutional reform initiatives, including the controversial judicial reform.

Although the mining ban was not listed among the priorities announced by president-elect Claudia Sheinbaum for her administration, which takes over on October 1, it is now expected to be debated and approved by both chambers in September, where the ruling coalition holds a significant majority.

Betancourt believes that rather than a blanket ban on open-pit mining, the focus should be on better regulation through consensus.

"The majority rules, but it’s important to invite all stakeholders to work, as no one holds the absolute truth. Sometimes it's not appropriate to see things in black and white. There should be a middle ground," said the consultant.

He cited the example of Sonora, Mexico's biggest copper-producing state, where 25% of mining operations use open-pit methods.

"By banning this practice, you're affecting 25% of the population out of every 100, even though this practice isn’t inherently bad. It's a primary extraction method. What’s needed is simply stricter regulation, including more rigorous permits, environmental impact assessments, community consultations, and respect for indigenous peoples and pre-Hispanic heritage, but keeping sustainability in mind," Betancourt underscored.

Mexican mining chamber Camimex estimates that 60% of the production value of the domestic mining-metallurgical industry comes from open-pit mines. The chamber warns that if the reform is passed in its current form, over one million formal jobs could be lost, and the development of more than 690 mining and rural communities could be severely impacted.