Mining industry experts have already warned against the Mexican govt’s proposed changes to the country’s mining regulations. Which include shorter concessions and stricter permit requirements. They believe that these changes could harm the industry’s prospects for expansion.
The period of mining concessions would be drastically cut from 50 years to 15 years under the proposed legislation that President Andres Manuel López Obrador presented to members of Congress’ lower house on Tuesday.
Mexico, a significant mining nation for many years. Ranks in the top Ten producers of copper & gold as well as primary silver in the world.
The plan would also set new obligations to seek mining and water licences, reveal mining impacts. And oblige miners to return at least 10 percent of the earnings to communities. But, it must still pass a number of legislative hurdles before it can be implemente.
The nation’s mining chamber, Camimex, emphasised in a note late on Tuesday that it was still analysing the plan but expressed concern that the modifications envisioned in the draught could have “significant ramifications” for the industry.
Strict Re-oriented Mining Laws
Lopez Obrador has declined to give any new mining licenses since taking office in late 2018. Claiming that too many had already been granted by prior govt’s.
In another action that mining analysts believe is limiting investor interest. The president supported the nationalisation of the nation’s emerging lithium industry previous year, selecting a newly established state-run firm to mine the prized battery metal.
After rising more than 5 percent the day before, shares of valuable metals miners Industrias Penoles dropped more than 3 percent on Wednesday. While Compania Minera Autlan’s stock dropped close to 2 percent.
Grupo Mexico, a major copper producer, increased by 0.73 percent, marking its 3rd straight day of profits.
Camimex said in a statement that it anticipates “a broad, inclusive & informed parliamentary discussion.” And hoped that industry concerns would be taken into consideration during the impending debate over the idea.