Mexico preparing technical consultations on mining reform

Mexico’s government is preparing the start of technical consultations with mining interest groups regarding regulations linked to the reform of four laws, two sources told BNamericas.

The meetings were proposed by Canada’s foreign trade minister Mary Ng back in May when she met with Mexico’s economy minister Raquel Buenrostro, who agreed to facilitate talks with Canadian miners with operations in the country to discuss technical questions and listen to their concerns.

The mining reform promoted by President Andrés Manuel López Obrador reduces the maximum duration of concessions from 100 to 80 years, makes permits conditional on water availability, and gives geological service SGM or other public entities exclusive exploration rights, which was criticized by the industry.

“Shortly, the technical meetings will begin. We already have a signal from the economy ministry that there will be all the interested parties,” one source close to the matter, requesting anonymity, told BNamericas. "They are calling us to get organized, we don't know exactly when," the source said.

Buenrostro is scheduled to travel to Canada to meet her counterpart this month, putting pressure on her to show progress on the commitments made to Ng.

Mining chamber Camimex will take part as the local industry voice and already collected sector concerns and analyses, another source, also requesting anonymity, told BNamericas.

The Canadian Chamber of Commerce in Mexico will represent Canadian companies, while environmental groups are also expected to attend.

One source hoped the roundtables will be set up "in the next few days" because time was running out.

The 180-day period for drafting the regulations and during which industry can provide input has already started. Industry representatives hopes to clarify legal gaps regarding mining matters and water and waste issues that were fast-tracked by congress despite criticism from opposition legislators.

NGO Cambiemosla Ya was a key player in pushing the reform. It published a letter of support, signed by 18 international groups, which claim local communities were consulted prior to approval.

Meanwhile, the technical consultations are being set up as opposition lawmakers filed an unconstitutionality claim with the supreme court to halt the reform, claiming approval was not in line with the legislative process and it does not comply with the law.

Miners also filed ‘amparo’ appeals against aspects they deem harmful. Canada’s First Majestic was the first to win a provisional exemption at a federal district court.

“The power of this unconstitutionality action is that if the supreme court, by a majority of eight, concludes that there were important violations of the administrative procedure to approve the reform, as I estimate will be the case because it was very untidy, it can completely invalidate this reform,” a constitutional lawyer, requesting anonymity, told BNamericas.