The amendment to the Mining Law, the National Water Law, the General Law of Ecological Balance and Environmental Protection, and the General Law for the Prevention and Comprehensive Management of Waste was published yesterday in the Federal Official Gazette and became effective today (prior approval of the Chamber of Deputies and the Senate, on April 20 and 28, respectively). The amendment represents a significant milestone in mining legislation. This newsletter explores the key aspects of this amendment and its impact on the mining industry and the industrial sector as a whole.
Concessioned lands or areas
The amendment eliminates the possibility of granting mining claims at free plots to the first applicant. As of its entry into force, all new mining claims will be granted through a public bidding process.
It is not possible to obtain a mining claims at: areas located within lands declared mining reserves, areas with minerals declared strategic by the state, protected natural areas, areas without water availability, areas where mining activities pose a risk to the population, as well as areas where the Ministry of Economy and the Ministry of Energy determine that mining activities are incompatible with oil (and other hydrocarbon) exploration and extraction activities or with public electric power transmission and distribution activities.
Competition public bidding process for the granting of new mining claims
Once the call for competition is published, each participant can submit a proposal for economic compensation and a discovery premium. Indigenous or Afro-American communities inhabiting the territory, as well as holder of the mining claims contiguous to the lot, maintain a preference right for the granting of the mining claim. The amendment prohibits granting mining claims to the holder of two or more mining claims contiguous to the plot.
The amendment includes the granting of indefinite term assignments in favor of the Federal Public Administration parastatal entities. These assignments are limited for minerals or substances strategic or reserved to the State and cannot be transferred to private individuals or entities.
This change in the granting of mining claims entails the concentration of mining exploration activities in the Mexican Geological Service, through exploration orders issued by the Ministry of Economy. There is the possibility of entering into collaboration agreements (with a maximum duration of 5 years) for the exploration of lots with third parties who proposed the exploration to the Ministry of Economy, granting them a preferential right if the competition process is opened.
According to the transitional articles, pending applications for new mining claims will be dismissed without any further procedure.
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