Mexico's mining industry steps up lobbying to ditch proposed open-pit ban

Representatives of the Mexican mining industry met with senators of the new legislature to lay out the problems facing the sector, such as the potential ban on open-pit mining that is soon to be discussed in both chambers of congress.

Following the composition of the upper chamber’s new mining committee, the leaders of the association of mining engineers, metallurgists and geologists (AIMMGM), Mujeres WIM Mexico, the mining chamber, the college of mining engineers, metallurgists and geologists (CIMMGM) and the Sonora mining cluster, among others, met with Sonoran senator Lorenia Valles Sampedro, who chairs the committee.

AIMMGM president Rubén del Pozo attended the session and said it would be positive for the committee to “serve as an efficient means in the legislature to give mining its proper dimension for the development of the country,” according to a statement.

Regarding the potential ban on open-pit mining, Del Pozo stressed that Mexican mining practices are among the best in the world.

He also said it is necessary to provide certainty to local and foreign entrepreneurs interested in participating in the sector, because many investors have migrated to other countries where they have better conditions for investing.

"The ban on open-pit mining implies the destruction of a strategic sector for the national economy and puts Mexico's mining sovereignty at risk by turning it into a country dependent on imports," Del Pozo said.

"Our commitment extends to more than 696 communities where we operate, benefiting more than 3mn families who depend on this noble activity." 

He also argued that open-pit mining should be regulated but not stigmatized. “Let us continue to maintain Mexico in its prominent position as the main producer of essential minerals for the development of renewable energy, technology, medicines, transportation, furniture, household appliances and practically everything that humanity requires to make life more productive and efficient,” he said.

The reform initiative was presented by former president Andrés Manuel López Obrador in February as part of a package of 20 proposals to modify the constitution.

Light at the end of the tunnel

In mid-August, the constitutional committee of the lower chamber approved the ban on open-pit mining. However, neither chamber has debated the initiative in plenary sessions, suggesting that it may not prosper, at least in its current form.

What is more, the plan to ban open-pit mining was not included in a list of 100 pledges outlined by President Claudia Sheinbaum when she took office on October 1, which could be good news for the country's mining sector.

Jose Sevilla-Macip, a senior research analyst at S&P Global Market Intelligence, said whether the ban goes ahead will depend, in part, on the ruling Morena party and whether lawmakers make it a priority. He added that it will likely be up to Sheinbaum to pressure lawmakers to vote on the bill.