MEXICO Law and Practice Contributed by: Fernando Todd, Mariana Todd, Jorge Garcia and Silvia Alanis, Todd
dures and conditions to obtain, operate and maintain mining concessions. In addition to federal mining concessions, mining companies must secure state and municipal permits for operational aspects of the mining project, such as construction and land issues and, in some cases, environmental local policies. In Mexico, mining concessions are governed by a robust legal framework that establishes conditions for their acquisition and maintenance. The Mining Authority, operating under the Ministry of Economy, administers these concessions. The Mining Law out - lines the principles and processes for the exploration, exploitation, and management of mineral resources. Role of the Mining Authority The Mining Authority is tasked with ensuring legal security for the mining industry by enforcing regula - tions and monitoring compliance. Its overarching goal is to encourage investment in the sector to drive eco - nomic development while balancing the interests of all stakeholders. Granting Mining Concessions Mining concessions are awarded through a public bid - ding process designed to ensure the Mexican state receives the best possible consideration. The process is governed by specific conditions, including the fol - lowing. 1.7 Mining: Security of Tenure Mining Concessions in Mexico • Technical, legal, and financial requirements: appli - cants must demonstrate technical, legal, econom - ic, and administrative capacity. • Social and environmental obligations: • conduct a social impact study and implement a programme of restoration, closure, and post-clo - sure of mines; • provide financial guarantees (eg, deposits, insur - ance, or trusts) to address the social impact study’s recommendations; • obtain environmental, labour, energy, social, and other federal authorisations, which must be report - ed to the Mining Authority;
• conduct prior, free, and informed consultations with indigenous and Afro-Mexican communities in the area; and • specify the minerals or substances to be exploited. Concession Duration and Renewal • Initial term: concessions are granted for 30 years. • First extension: a 25-year extension is available. • Second extension: an additional 25-year period may be granted through a public bidding process, where the original concessionaire holds a preferen - tial right to match the highest bid. • Pre-operative period: the first five years of a new concession are designated for pre-operative activi - ties, with no possibility of extension. Maintenance of Mining Concessions To maintain concessions, holders must: • submit annual reports detailing activities and dis - covered resources; • pay fees to the state for holding the concession; and • conduct works and activities on the concession and file assessment work reports. Concessionaires may request that the Mining Author - ity suspend activities once, for up to three years, if they provide evidence that work was impossible due to technical, economic, employment, judicial, or force majeure reasons. The Ministry must be notified within ten working days of the suspension. Transfer of Mining Concessions Transferring a mining concession requires prior approval from the Ministry of Economy. Approval is granted if the acquiring party demonstrates compli - ance with the requirements for being a concession holder. Concession holders may grant liens or security inter - ests over their mining rights to secure obligations, provided the concession relates to an operating mine. Although the 2023 Mining Law Reform introduced new rules governing assignments, transfers, and security interests, the absence of an implementing Regulation has created a legal and administrative gap. In prac -
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