MEXICO Law and Practice Contributed by: Fernando Todd, Jorge Garcia, Silvia Alanis and Ana Lilia Solano, Todd
Regulatory administration • The Ministry of Economy, through the Mining Authority, oversees the issuance, administra - tion, and enforcement of mining concessions. • Other governmental entities regulate related aspects of mining activities: (a) Ministry of Environment and Natural Resources (SEMARNAT): Environmental permits and regulations; (b) National Water Commission (CONAGUA): Water usage and rights; (c) Ministry of National Defence (SEDENA): Use of explosives and related security measures; (d) Ministry of Labour and Social Security (STPS): Labour conditions and worker safety; and (e) Ministry of Agrarian, Territorial, and Urban Development (SEDATU): Land use and territorial planning. 1.5 Nature of Mineral Rights Under Mexican law, mineral resources belong to the nation, and mining concessions grant private parties the right to exploit these resources but not ownership or rights over the surface land • Article 27 of the Political Constitution of the United Mexican States establishes that all land, waters, and minerals within Mexican ter - ritory belong to the state. Their use by private entities is allowed only through concessions granted by the Federal Executive via the Ministry of Economy, in accordance with the Mexican Mining Law and its regulations. • Certain resources, such as oil, hydrocarbons, lithium, liquid or gaseous minerals, and radio - active materials, are excluded from private where the concessions are located. Legal Framework and Regulations Constitutional basis
concessions and remain exclusively managed by the state. Mining concessions • Scope: Concessions allow the exploitation of underground mineral resources and are distinct from surface land rights, which must be negotiated separately. • Transferability: Mining concessions can be transferred or encumbered under the Mining Law, subject to regulatory approval. • Prior Approval for Transfer: (a) The Ministry of Economy must approve any transfer of mining concessions. (b) The acquirer must demonstrate compli - ance with legal requirements to qualify as a mining concession holder. • Security Interests: Concession holders may use their mining rights as collateral for secur - ing obligations, provided: • the concession pertains to an operating mine; and • the beneficiary of the lien or security interest agrees to comply with the requirements to hold a mining concession within six months after enforcing the lien or transfers the rights to a qualified holder. 1.6 Granting of Mineral Rights Under Article 27 of the Political Constitution of the United Mexican States, all lands, waters, and natural resources in Mexico, including minerals, are the property of the Mexican state. Private parties may only use and exploit these resources through mining concessions granted by the fed - eral executive, via the Ministry of Economy, in accordance with the Mexican Mining Law and its regulations. It is important to note that the rights of a min - ing concession come from an administrative act issued by the competent federal authority, which
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