MEXICO Law and Practice Contributed by: Fernando Todd, Mariana Todd, Jorge Garcia and Silvia Alanis, Todd
Concessions and public bidding Concessions are awarded through public bidding to ensure the Mexican state secures the best economic consideration. Holders of existing concessions may receive preferential rights over adjacent areas if they match the highest economic proposal. New mining concessions term Under the new Mining Law, the term of mining con - cessions has been reduced from 50 years to 30 years. These concessions are extendable for an additional 25 years. Following this extension, a second 25-year renewal may be granted, but only through a public bidding process. In such cases, the original conces - sionaire will have a preferential right to match the high - est bid. The first five years of a new mining concession are designated exclusively for pre-operative activities, and this period cannot be extended. Social and environmental requirements Concession holders must fulfil several obligations: • conduct social impact studies and implement res - toration, closure, and post-closure plans; • provide financial guarantees (eg, deposits or trusts) to support mitigation and compensation measures; • obtain and report federal authorisations, including environmental, labour, and energy permits; and • conduct prior, free, and informed consultations with indigenous and Afro-Mexican communities in affected areas. Community rights and benefits Indigenous and Afro-Mexican communities residing on concession land, where applicable, are given prior - ity to match the most competitive economic proposal for concessions. Additionally, concession recipients must: • sign agreements for land-use permits; and • pay at least 5% of mining profits to the affected communities, a requirement now codified by law. Water availability Mining concessions are contingent on obtaining national water concessions for mining purposes.
Public consultations Public consultations must align with environmental impact authorisations and include information from social impact studies. These consultations are simul - taneous but occur after concession awards, with applicants covering their costs in advance. Legal challenges and uncertainty Despite the current validity of the new Mining Law, the reform was initially subject to numerous constitutional challenges. However, following a series of key rulings – including the June 2025 decision of the First Cham - ber and the September 2025 decision of the Plenary of the SCJN – the Supreme Court has confirmed the constitutionality of the core provisions of the 2023 reform, particularly those relating to concession rights, regulatory oversight, and the State’s authority to rede - fine the framework governing natural resources. As a result, the reinstatement of the previous Mining Law is no longer a plausible scenario. It is important to note that, under the Court’s latest interpretation, mining concessions granted prior to the 2023 reform are not considered vested rights immune to regulatory change. Instead, they are subject to the updated legal framework, provided that the essential conditions of the concession title are respected. None - theless, the SCJN has clarified that the new regulatory obligations and operational conditions imposed by the reform do not alter the fundamental legal nature of existing concessions, which therefore continue to be valid and enforceable under the revised regime. Regulations to the Mining Law The Regulation of the Mining Law provides detailed guidance on the implementation of the Mining Law. It specifies the procedures for applying for concessions, conducting exploration and exploitation activities, ful - filling concession holders’ obligations, and defining the authorities’ roles and responsibilities, among other operational and administrative matters. Following the enactment of the new Mining Law, new Regulations consistent with its provisions are expect - ed to be issued. However, as of the date hereof, the new Regulations have not yet been enacted, and the previous Regulations, aligned with the former Mining Law, remain in force.
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