MEXICO Law and Practice Contributed by: Fernando Todd, Jorge Garcia, Silvia Alanis and Ana Lilia Solano, Todd
1. Mining Law: General Framework 1.1 Main Features of the Mining Industry The mining industry in Mexico has long been a cornerstone of the country’s economy and con - tinues to play a pivotal role in its development. Mexico boasts a remarkable diversity of mineral resources spread across its national territory, including silver, gold, copper, zinc, lead, fluorite, manganese, barite, and more. This vast array of resources significantly strengthens the industry. Mexico’s potential for mining is rooted in its rich and diverse geology, which has resulted in extensive mineral deposits. The country is also home to a skilled and dedicated workforce, fur - ther bolstering its position as a mining power - house. With a heritage dating back to pre-Hispanic times and a major boom during the 16th cen - tury, Mexico has established itself as the world’s leading producer of silver. In the 21st century, the sector has experienced unprecedented levels of investment, leading to the emergence of numer - ous new companies and projects. This growth has driven the adoption of a new governance model emphasising social responsibility, trans - parency, and collaboration among stakeholders. According to the Ministry of Economy, Mexico remains the world’s leading producer of silver and ranks among the top producers of metals such as gold, copper, and lead. Mining produc - tion has been an integral part of the Mexican economy for generations. Specifically, the min - ing-metallurgical sector contributes 2.05% of the GDP, as reported by the National Institute of Statistics and Geography, generating substantial income and employment across various regions.
Mexico’s mining industry continues to attract significant foreign investment, with global mining companies establishing operations to capitalise on the country’s abundant mineral reserves and favourable business opportunities. This influx of investment has driven the sector’s continued development, creating jobs and strengthening production chains. An essential aspect of this growth is the evolv - ing relationship between mining companies and local communities. Recent legal reforms have notably impacted these dynamics, particularly through the requirement for public consulta - tions before granting new mining concessions. These measures aim to ensure greater commu - nity involvement and transparency in the mining process. 1.2 Legal System and Sources of Mining Law Mexico’s legal system is based on civil law, and the primary sources of Mexican mining legisla - tion are outlined below. Constitution of the United Mexican States Mining activities in Mexico are regulated under Article 27 of the Mexican Constitution, which declares that all natural resources, including minerals, are the property of the Nation. Private entities may conduct mining activities, under specific conditions and regulations established by law, primarily through a system of mining concessions. The government retains exclusive rights over certain activities, including the exploration and exploitation of oil, radioactive minerals, lithium, and solid, liquid, or gaseous hydrocarbons. These resources are not subject to concessions, as their management remains under strict gov - ernment control.
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