MEXICO Law and Practice Contributed by: Fernando Todd, Jorge Garcia, Silvia Alanis and Ana Lilia Solano, Todd
• conduct social impact studies and implement restoration, closure, and post-closure plans; • provide financial guarantees (eg, deposits or trusts) to support mitigation and compensa - tion measures; • obtain and report federal authorisations, including environmental, labour, and energy permits; and • conduct prior, free, and informed consulta - tions with indigenous and Afro-Mexican com - munities in affected areas. Community rights and benefits Indigenous and Afro-Mexican communities residing on concession land, where applicable, are given priority to match the most competitive economic proposal for concessions. Addition - ally, concession recipients must: • sign agreements for land-use permits; and • pay at least 5% of mining profits to the affected communities, a requirement now Mining concessions are contingent on obtaining national water concessions for mining purposes. Public consultations Public consultations must align with envi - ronmental impact authorisations and include information from social impact studies. These consultations are simultaneous but occur after concession awards, with applicants covering their costs in advance. Legal challenges and uncertainty Despite the new Mining Law’s current validity, it faces ongoing appeals in the SCJN. If the court rules against the reforms, the previous Mining Law will be reinstated, further contributing to the uncertainty affecting the sector. codified by law. Water availability
It is important to note that concessions granted prior to the implementation of the new Mining Law will, in the first instance, remain unaffected by its changes. Regulations to the Mining Law The Regulation of the Mining Law provides detailed guidance on the implementation of the Mining Law. It specifies the procedures for applying for concessions, conducting explora - tion and exploitation activities, fulfilling con - cession holders’ obligations, and defining the authorities’ roles and responsibilities, among other operational and administrative matters. Following the enactment of the new Mining Law, new Regulations consistent with its provisions are expected to be issued. However, as of the date hereof, the new Regulations have not yet been enacted, and the previous Regulations, aligned with the former Mining Law, remain in force. The General Law of Ecological Balance and Environmental Protection This law contains provisions that affect the min - ing industry, especially with respect to environ - mental impact assessment and waste manage - ment. Agrarian Law In Mexico we have private property and “ejido” land. “Ejido” land refers to a system of com - munal land ownership, established as part of agrarian reforms after the Mexican Revolution. Ejido land is owned collectively by a group of people, typically farmers or indigenous commu - nities, and is primarily used for agriculture. While individuals or families have the right to work spe - cific plots, the land cannot be sold or transferred without community and government approval.
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