MEXICO Trends and Developments Contributed by: Fernando Todd, Mariana Todd, Jorge Garcia and Silvia Alanis, Todd
ening of compliance mechanisms, stricter environ - mental monitoring, and clearer rules governing water use, tailings management, and ongoing obligations for operators. The new regulation is expected to opera - tionalise the 2023–24 reforms and strengthen the gov - ernment’s capacity to enforce them. Sheinbaum’s approach is one of continuity with the previous administration, but more technocratic and coordinated. Authorities such as the Ministry of Econ - omy, SEMARNAT and CONAGUA aim to harmonise permitting processes while increasing scrutiny on high-risk operations. At the same time, the President has repeatedly affirmed that legitimate concessions and investment rights will be respected if companies comply with the law. This regulatory stance is also shaped by Mexico’s preparation for the 2026 review of the USMCA/T-MEC. The government seeks to demonstrate environmen - tal responsibility, regulatory stability and institutional coherence to preserve competitiveness and investor confidence during the upcoming evaluation of North American trade commitments. Overall, Sheinbaum’s policy reframes mining as com - patible with national climate goals and ESG princi - ples, shifting the focus from extraction to regulation. Companies able to meet heightened environmental standards may benefit from a more predictable and transparent investment environment. Outlook and conclusion: challenges and opportunities ahead The 2023 Mining Law Reform represents a decisive turning point in the governance of Mexico’s natural resources. Its stated objectives – sustainability, trans - parency, and social responsibility – are legitimate and consistent with international standards. However, the reform’s real effectiveness depends on the issuance of a comprehensive and coherent Regulation that pro - vides legal certainty, administrative clarity, and pre - dictable implementation mechanisms for both public authorities and private operators. The continued absence of this Regulation generates uncertainty across the sector, leaving critical aspects – including concession renewal, environmental com -
pliance, water-use authorisations, and community consultation – open to interpretation. This regulatory vacuum has slowed investment and created opera - tional ambiguity, fostering an environment where administrative discretion often prevails over legal precision. In June 2025, the First Chamber of the Supreme Court of Justice (SCJN) reaffirmed the State’s sovereign authority to redefine the legal framework governing natural resources. The Court clarified that mining concessions and pending applications do not consti - tute vested rights but rather expectations contingent upon compliance with the prevailing legal order. This interpretation strengthens the constitutional principle that the subsoil and its resources remain the direct property of the Nation, reinforcing the State’s ability to adjust regulations in pursuit of public interest, envi - ronmental protection, and sustainable management. While this ruling provides constitutional clarity, it also highlights the urgent need for predictable and stable regulatory mechanisms to maintain investor confi - dence and support long-term planning. The absence of such mechanisms continues to expose the industry to interpretative and administrative risks, particularly regarding environmental authorisations and conces - sion renewals. Despite these challenges, market dynamics demon - strate that Mexico’s mining potential remains highly attractive. High commodity prices have driven notable M&A activity during 2024–25, including transactions involving Gatos Silver, SilverCrest Metals, and MAG Silver, confirming that investor appetite for high-qual - ity Mexican assets remains strong. This momentum underscores the resilience of the sector and the long- term value investors continue to assign to Mexico’s geological endowment and strategic position within North American supply chains. Considering the above, restoring predictability and legal certainty is essential if the mining industry is to advance under a model that reconciles economic development with environmental stewardship and social inclusion. The challenge for both government and operators lies in constructing a governance framework that ensures transparency, accountabil -
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