MEXICO Trends and Developments Contributed by: Fernando Todd, Mariana Todd, Jorge Garcia and Silvia Alanis, Todd
Mexico’s Mining Sector: Legal Reform, Constitutional Challenges, and Regulatory Uncertainty The mining industry in Mexico has long been a corner - stone of national economic development, contribut - ing significantly to exports, employment, and regional growth. Historically, mining has shaped the country’s economic and social structure and remains one of its most relevant industrial sectors. However, the industry has undergone a profound transformation following the enactment of the 2023 Mining Law Reform, which substantially modified the legal framework govern - ing the exploration, exploitation, and management of mineral resources. In addition, Mexico possesses substantial deposits of minerals now classified as “critical”, including lithium, copper, silver, zinc, rare earth elements and fluorite. This endowment not only underscores the strategic importance of the sector but also positions Mexico – should it choose to fully leverage these resources – to play a meaningful role in the global supply chain of critical minerals. While the reform sought to strengthen environmental protection, transparency, and the State’s control over strategic resources, its implementation has raised concerns across the sector due to legal uncertainty, regulatory gaps, and interpretative ambiguities. This situation has been further aggravated by the absence, to date, of the Regulation to the Mining Law, an essen - tial tool that should operationalise and clarify many of the provisions introduced by the 2023 reform. This omission has left several concepts and procedures undefined, creating an environment of insecurity for concession holders, investors, and authorities alike. The 2023 Mining Law reform The 2023 reform to the Mining Law, along with amend - ments to the National Water Law, the General Law of Ecological Balance and Environmental Protection, and the General Law for the Prevention and Compre - hensive Management of Waste, sought to realign the mining sector with broader social and environmental goals. The Federal Executive presented it as part of a structural effort to promote sustainability and ensure greater community participation in the management of natural resources.
The most relevant changes include: • the reduction of concession terms from 50 to 30 years, with the possibility of a single 25-year renewal; • the mandatory submission of social and environ - mental impact assessments before any exploration or exploitation activity; • the incorporation of free, prior, and informed con - sultation for indigenous and Afro-Mexican commu - nities; and • allocation by public bidding: previously, conces - sions could be obtained by applying; with the reform, the granting of new concessions, if it occurs, would be through public competitions or bidding processes administered by the Mexican Geological Service (SGM) for areas previously explored by this agency. Although these measures seek to reinforce nation - al sovereignty over mineral resources, they have also generated perceptions of political discretion and reduced legal predictability. The reform further expanded the grounds for concession cancellation, introduced mine closure and post-closure obligations, and created mechanisms for benefit-sharing with local communities. However, the lack of a corresponding Regulation has prevented the practical and uniform implementation of these objectives, creating uncertainty about the scope and enforcement of the new provisions. Absence of a Regulation and its consequences As of October 2025, the Federal Government had yet to issue the Regulation to the Mining Law as reformed in 2023. This lack of secondary legislation has gener - ated a state of legal and operational uncertainty, as many provisions depend on detailed regulatory devel - opment to be applied effectively. The Regulation should define, among other things: • the procedure for concession applications, renew - als, and cancellations; • the technical and environmental requirements for exploration activities;
260 CHAMBERS.COM
Powered by FlippingBook