MEXICO Law and Practice Contributed by: Fernando Todd, Mariana Todd, Jorge Garcia and Silvia Alanis, Todd
Recent Legislative Reforms Recent reforms have introduced significant changes to environmental laws, particularly affecting the min - ing sector. Mining Law Reforms (8 May 2023) These reforms imposed stricter environmental con - trols on mining projects. General Law on Climate Change Reforms (15 November 2023) These amendments focus on addressing climate chal - lenges, including greenhouse gas emissions, sustain - ability, energy efficiency, and natural resource man - agement, such as water. These reforms aim to address critical environmental challenges but have sparked numerous amparo law - suits from companies and individuals in the mining sector. The lawsuits argue that the reforms infringe on acquired rights, the principles of legality, and the right to legal certainty, creating legal and operational uncertainty in the industry. 2.2 Impact of Environmentally Protected Areas on Mining In Mexico, several areas are designated as protected and/or reserved zones to conserve biodiversity and ecosystems. These areas include nature reserves, national parks, biospheres, and other conservation categories, and the protection of these areas is regu - lated by Mexican environmental legislation. In protect - ed areas, mining activity may be restricted or even prohibited, especially if it is considered that it could have significant negative impacts on the environment. The environmental impact study requested for mining concessions must include an analysis that evaluates the potential environmental effects of the proposed activities and proposes mitigation measures, and in the case of a protected area, this must be noted and respected as a limit to mining operations. Mining companies operating near protected areas are often subject to stricter requirements regarding sustainable practices and corporate social responsibility. Additionally, the new legal framework prioritises the protection and sustainable use of water resources in
mining activities. These reforms represent a paradigm shift in Mexico’s approach to mining governance, pri - oritising ecological preservation and the protection of human rights. 2.3 Impact of Community Relations on Mining Projects In Mexico, the issue of community relations in mining projects is of great importance and is subject to spe - cific regulations and an increasing focus on corporate social responsibility. The issue is even developed at the constitutional level and criteria have been defined by the Supreme Court of Justice. Article 6° of the Mining Law contemplates the obliga - tion to carry out a prior, free and informed consultation process with indigenous and Afro-Mexican people or communities in the area of the mining concessions. Some considerations of the consultation are: • the consultation will be carried out under the direc - tion of the Ministry; • it must adhere to the principles of being prior, free, informed, adequate, and conducted in good faith, and be simultaneous and supplementary to that required for obtaining the environmental impact statement, which must include information on the social impact study; however, said study will only be submitted after the mining concession bid has been awarded; and • the cost will be covered in advance by the appli - cant for the mining concession. The recipient of a new concession in an area with existing indigenous or Afro-Mexican peoples or com - munities must sign an agreement to obtain the land use permit as well as to pay a consideration of at least 5% of the profits from the mining activity to the affected community, so the agreements signed with the communities for granting a new concession will have a fixed legal basis rather than being subject to discretionary criteria. Additionally, the new legal framework priorities the protection and sustainable use of water resources in mining activities. Concessions and permits are now subject to stricter conditions to ensure that mining
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