MEXICO Law and Practice Contributed by: Fernando Todd, Mariana Todd, Jorge Garcia and Silvia Alanis, Todd
regulations. This framework ensures that the state acts as both a grantor and regulator of mining rights. Key Aspects of the Mexican Mining Legal Framework Scope of mining concessions • Concessions grant rights to exploit and extract mineral resources but do not convey ownership or surface land rights. • Surface rights must be negotiated separately with landowners or communities. Exclusions • Certain resources, including oil, hydrocarbons, lithium, radioactive minerals, and liquid or gaseous substances, are excluded from concessions and remain strictly under state control. Regulatory administration • The Ministry of Economy, through the Mining Authority, oversees the issuance, administration, and enforcement of mining concessions. • Other governmental entities regulate related aspects of mining activities as follows. • Ministry of Environment and Natural Resources (SEMARNAT) – environmental permits and regula - tions. • National Water Commission (CONAGUA) – water usage and rights. • Ministry of National Defence (SEDENA) – use of explosives and related security measures. • Ministry of Labour and Social Security (STPS) – labour conditions and worker safety. • Ministry of Agrarian, Territorial, and Urban Develop- ment (SEDATU) – land use and territorial planning. 1.5 Nature of Mineral Rights Under Mexican law, mineral resources belong to the nation, and mining concessions grant private parties the right to exploit these resources but not ownership or rights over the surface land where the concessions are located. Legal Framework and Regulations Constitutional basis • Article 27 of the Political Constitution of the United Mexican States establishes that all land, waters, and minerals within Mexican territory belong to the
state. Their use by private entities is allowed only through concessions granted by the Federal Exec - utive via the Ministry of Economy, in accordance with the Mexican Mining Law and its regulations. • Certain resources, such as oil, hydrocarbons, lithium, liquid or gaseous minerals, and radioactive materials, are excluded from private concessions and remain exclusively managed by the state. Mining concessions • Scope: Concessions allow the exploitation of underground mineral resources and are distinct from surface land rights, which must be negotiated separately. • Transferability: Mining concessions can be trans - ferred or encumbered under the Mining Law, sub - ject to regulatory approval. • Prior Approval for Transfer: • The Ministry of Economy must approve any trans - fer of mining concessions. • The acquirer must demonstrate compliance with legal requirements to qualify as a mining conces - sion holder.Security Interests: Concession holders may use their mining rights as collateral for secur - ing obligations, provided: • the concession pertains to an operating mine; and • the beneficiary of the lien or security interest agrees to comply with the requirements to hold a mining concession within six months after enforc - ing the lien or transfers the rights to a qualified holder. 1.6 Granting of Mineral Rights Under Article 27 of the Political Constitution of the United Mexican States, all lands, waters, and natural resources in Mexico, including minerals, are the prop - erty of the Mexican state. Private parties may only use and exploit these resources through mining conces - sions granted by the federal executive, via the Ministry of Economy, in accordance with the Mexican Mining Law and its regulations. It is important to note that the rights of a mining con - cession come from an administrative act issued by the competent federal authority, which must observe the Mining Law that establishes the requirements, proce -
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