MEXICO Law and Practice Contributed by: Fernando Todd, Mariana Todd, Jorge Garcia and Silvia Alanis, Todd
tice, until the new Regulation is issued, the Ministry of Economy continues to process and authorise conces - sion transfers according to the procedural and sub - stantive criteria of the pre-2023 regime. As a result, despite the legislative reform, concession transfers are still being carried out under the same framework, requirements, and administrative practices that exist - ed before the 2023 amendments. Causes for Cancellation Concessions may be cancelled generally due to: • not making timely payments of the corresponding contributions for two consecutive fiscal years; • not submitting the reports required by the Mining Law and its Regulations for two consecutive years or five non-consecutive years; • not starting the corresponding work within one year from the concession’s effective date or failing to carry out the activities covered by the conces - sion for two consecutive years; • not submitting the Mine Closure Plan to the Min - istry of Economy within two years and up to one year before the closure of operations; • not having a valid water concession for industrial use in mining; or • the presence of an imminent risk of ecological imbalance, irreversible damage or deterioration to natural resources, cases of contamination with hazardous repercussions for ecosystems, their components, surface or underground hydrologi - cal systems, or public health, in accordance with applicable provisions in the field. 2. Impact of Environmental Protection and Community Relations on Mining Projects 2.1 Environmental Protection and Licensing of Mining Projects Environmental Framework for the Mining Industry in Mexico The General Law of Ecological Balance and Environ - mental Protection serves as the cornerstone of envi - ronmental legislation affecting the mining industry in Mexico. This law establishes general principles and norms, guiding the issuance of state-specific environ -
mental regulations. It addresses critical topics such as environmental impact assessments, waste manage - ment, biodiversity protection, and citizen participation in environmental matters. Additionally, the Environmental Impact Law and its regulations govern the environmental impact assess - ment process for projects with potential environmental effects. These laws detail the procedures for obtaining environmental authorisations, which include present - ing and reviewing environmental impact studies. Mexican Official Standards (NOMs) further establish mandatory technical regulations across various envi - ronmental domains, including air quality, water, soil, noise, and waste management. Environmental Authorisation Process for Mining Projects To obtain environmental authorisation for a mining project, the following steps must be completed: Submission of an Environmental Impact Study The project proponent must submit this study to the Ministry of Environment and Natural Resources (SEMARNAT). The study evaluates the potential envi - ronmental impacts of the proposed activities and includes proposed mitigation measures. Public consultation A public consultation process is conducted to allow citizen participation in evaluating the project. Evaluation and resolution SEMARNAT reviews the study and consultation feed - back, issuing a resolution based on the procedures established in the law. Monitoring and compliance Once authorised, the project is subject to continuous monitoring to ensure compliance with the conditions outlined in the environmental authorisation. Environmental authorisations are conducted at the federal level through SEMARNAT, making the process uniform across Mexico, and, on a case-by-case basis, state environmental authorities are involved.
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