MEXICO Law and Practice Contributed by: Fernando Todd, Jorge Garcia, Silvia Alanis and Ana Lilia Solano, Todd
Mining Law Recent amendments to Mexico’s mining legislation In May 2023, significant amendments were made to the Mining Law, National Waters Law, and related environmental legislation, introduc - ing stricter regulations to enhance environmen - tal protection and promote sustainable resource management. These reforms, however, have sparked numerous amparo lawsuits (constitu - tional appeals) from companies and individuals in the sector. Plaintiffs argue that the amend - ments infringe upon acquired rights, the princi - ples of legality, and the right to legal certainty. The resulting uncertainty has disrupted the sec - tor, creating economic and labour risks. In response to the numerous constitutional law - suits and initial contradictory judgments there - to, the Supreme Court of Justice of the Nation (SCJN) issued General Agreement No 3/2024, instructing courts to delay rulings on amparo lawsuits and appeals related to the reforms. The SCJN will ultimately decide the constitutional - ity of these amendments, though a ruling is still pending. Key provisions of the New Mining Law The Mining Law establishes the framework for the exploration, exploitation, and management of mineral resources, including the process for granting mining concessions. Key elements are described below. Exploration activities Exploration and prospecting activities in new concession zones are exclusively managed by the Mexican Geological Survey ( Servicio Geológico Mexicano ). These activities are initi - ated through exploration orders published in the Mexican Official Gazette.
Private entities may request the Ministry of Economy to authorise exploration in a specific area where they possess information on poten - tial mineral deposits. In such cases, the Mexican Geological Survey may enter into collaboration agreements with the requesting party to conduct exploration activities. The requesting party has the right to be granted the new mining concession once the public bid - ding process is completed, provided that (i) they meet the requirements to qualify as a mining concession holder under the new Mining Law, and (ii) their economic proposal in favour of the Mexican State is at least 90% of the highest bid Concessions are awarded through public bid - ding to ensure the Mexican state secures the best economic consideration. Holders of exist - ing concessions may receive preferential rights over adjacent areas if they match the highest economic proposal. New mining concessions term Under the new Mining Law, the term of mining concessions has been reduced from 50 years to 30 years. These concessions are extendable for an additional 25 years. Following this extension, a second 25-year renewal may be granted, but only through a public bidding process. In such cases, the original concessionaire will have a preferential right to match the highest bid. The first five years of a new mining concession are designated exclusively for pre-operative activities, and this period cannot be extended. Social and environmental requirements Concession holders must fulfil several obliga - tions: submitted during the process. Concessions and public bidding
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