Mexico’s mining sector is a key component of the country’s economy, representing 4 percent of its Gross Domestic Product (GDP). Recent changes to Mexico’s Mining Fund in response to the COVID-19 pandemic have reduced regulations on the mining sector by loosening restrictions on income distribution.
Mexico is the largest silver producer in the world and is among the top 10 global producers of gold and copper, as well as other precious minerals such as bismuth, cadmium, lead, and zinc. The country’s most significant mineral deposits are found in the states of Zacatecas, Colima, Baja California, and Sonora.
If you are considering operating in the country’s mining sector, or have already begun the process of getting a mining license in Mexico, you’ll want to understand how these changes might affect your business.
Mexico mining lawyer: understand the changes
Mexico’s Mining Fund is generated from revenue the Mexican government receives from the mining sector. The fund is used to strengthen infrastructure in mining regions and to promote a sector that in 2018 invested approximately $4 billion (USD) into the economy.
Recently, the Mexican Ministry of Economy approved modifications to the laws that regulate the fund and income distribution for the mining sector. The main changes affecting owners include:
- Cost-benefit analysis of the infrastructure projects supported by the mining fund to be eliminated
- Local authorities of mining regions to directly manage resources destined for the sector
- Local authorities will oversee mining quotas and delivery dates
Reactivating Mexico’s mining industry
In July 2020, Mexico’s Undersecretary for Mining Francisco Quiroga hosted the virtual conference “Mining’s New Normal: Reactivating the Industry.” The event brought together representatives from the mining sector and government to explore and discuss the way forward for Mexicos’s mining sector in the face of economic disruptions caused by the COVID-19 pandemic.
During the conference, the Secretary of Public Function — the entity responsible for security in strategic sectors — highlighted the importance of implementing a security strategy to ensure the safety of mining companies doing business in Mexico.
Currently, there are more than 240 companies conducting mining operations in the country.
When do you need a mining lawyer in Mexico?
If you are looking to move into the country’s mining sector, you will need to seek out the services of a trusted mining lawyer in Mexico. Among the tasks they will be able to help you with are:
- Negotiating and documenting the sale of mining resources with Mexican authorities
- Dealing with any processes related to employee safety and welfare
- Ensuring that legal procedures established by the government are properly adhered to
- Managing issues related to indigenous titles and cultural heritage
- Dealing with matters related to mining leases
Get professional assistance with Biz Latin Hub
Mexico’s diverse mineral resources represent significant commercial opportunities for foreign companies looking to invest overseas. At Biz Latin Hub, our team of multilingual legal specialists is equipped to help you navigate Mexico’s mining regulatory framework. With our full suite of market entry and back-office services, we are your single point of contact to successfully expand your company in Mexico, or elsewhere in Latin America.
Contact us now to receive personalized assistance.
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