MEXICO Law and Practice Contributed by: Fernando Todd, Jorge Garcia, Silvia Alanis and Ana Lilia Solano, Todd
must observe the Mining Law that establishes the requirements, procedures and conditions to obtain, operate and maintain mining conces - sions. In addition to federal mining concessions, min - ing companies must secure state and municipal permits for operational aspects of the mining project, such as construction and land issues and, in some cases, environmental local policies. In Mexico, mining concessions are governed by a robust legal framework that establishes condi - tions for their acquisition and maintenance. The Mining Authority, operating under the Ministry of Economy, administers these concessions. The Mining Law outlines the principles and process - es for the exploration, exploitation, and manage - The Mining Authority is tasked with ensuring legal security for the mining industry by enforc - ing regulations and monitoring compliance. Its overarching goal is to encourage investment in the sector to drive economic development while balancing the interests of all stakeholders. Granting Mining Concessions Mining concessions are awarded through a public bidding process designed to ensure the Mexican state receives the best possible con - sideration. The process is governed by specific conditions, including: 1.7 Mining: Security of Tenure Mining Concessions in Mexico ment of mineral resources. Role of the Mining Authority • Technical, legal, and financial requirements: applicants must demonstrate technical, legal, economic, and administrative capacity. • Social and environmental obligations:
(a) conduct a social impact study and imple - ment a programme of restoration, closure, and post-closure of mines; (b) provide financial guarantees (eg, depos - its, insurance, or trusts) to address the social impact study’s recommendations; (c) obtain environmental, labour, energy, social, and other federal authorisations, which must be reported to the Mining Authority; (d) conduct prior, free, and informed consul - tations with indigenous and Afro-Mexican communities in the area; and (e) specify the minerals or substances to be exploited. Concession Duration and Renewal • Initial term: concessions are granted for 30 years. • First extension: a 25-year extension is avail - able. • Second extension: an additional 25-year period may be granted through a public bidding process, where the original conces - sionaire holds a preferential right to match the highest bid. • Pre-operative period: the first five years of a new concession are designated for pre- operative activities, with no possibility of extension. Maintenance of Mining Concessions To maintain concessions, holders must: • submit annual reports detailing activities and discovered resources; • pay fees to the state for holding the conces - sion; and • conduct works and activities on the conces - sion and file assessment work reports.
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