MEXICO Law and Practice Contributed by: Fernando Todd, Jorge Garcia, Silvia Alanis and Ana Lilia Solano, Todd
Concessionaires may request that the Min - ing Authority suspend activities once, for up to three years, if they provide evidence that work was impossible due to technical, economic, employment, judicial, or force majeure reasons. The Ministry must be notified within ten working days of the suspension. Transfer of Mining Concessions Transferring a mining concession requires prior approval from the Ministry of Economy. Approval is granted if the acquiring party demonstrates compliance with the requirements for being a concession holder. Concession holders may grant liens or security interests over their mining rights to secure obli - gations, provided the concession relates to an operating mine. Additionally, within six months of enforcing the lien, the beneficiary of the lien or security interest must either meet the require - ments to hold a mining concession or transfer the rights to a qualified holder. Causes for Cancellation Concessions may be cancelled generally due to: • not making timely payments of the corre - sponding contributions for two consecutive fiscal years; • not submitting the reports required by the Mining Law and its Regulations for two con - secutive years or five non-consecutive years; • not starting the corresponding work within one year from the concession’s effective date or failing to carry out the activities covered by the concession for two consecutive years; • not submitting the Mine Closure Plan to the Ministry of Economy within two years and up to one year before the closure of operations; • not having a valid water concession for indus - trial use in mining; or
• the presence of an imminent risk of eco - logical imbalance, irreversible damage or deterioration to natural resources, cases of contamination with hazardous repercussions for ecosystems, their components, surface or underground hydrological systems, or public health, in accordance with applicable provi - sions in the field. 2. Impact of Environmental Protection and Community Relations on Mining Projects 2.1 Environmental Protection and Licensing of Mining Projects Environmental Framework for the Mining Industry in Mexico The General Law of Ecological Balance and Environmental Protection serves as the corner - stone of environmental legislation affecting the mining industry in Mexico. This law establishes general principles and norms, guiding the issu - ance of state-specific environmental regulations. It addresses critical topics such as environmen - tal impact assessments, waste management, biodiversity protection, and citizen participation in environmental matters. Additionally, the Environmental Impact Law and its regulations govern the environmental impact assessment process for projects with potential environmental effects. These laws detail the pro - cedures for obtaining environmental authorisa - tions, which include presenting and reviewing environmental impact studies. Mexican Official Standards (NOMs) further estab - lish mandatory technical regulations across vari - ous environmental domains, including air quality, water, soil, noise, and waste management.
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