MEXICO Law and Practice Contributed by: Fernando Todd, Jorge Garcia, Silvia Alanis and Ana Lilia Solano, Todd
near protected areas are often subject to stricter requirements regarding sustainable practices and corporate social responsibility. Also, a recent legislative proposal that has not been approved has introduced significant restric - tions on mining activities, particularly targeting open-pit mining. These measures are aimed at mitigating the environmental and social impacts associated with this extraction method, which has been criticised for its detrimental effects on ecosystems and surrounding communities. The bill effectively prohibit open-pit mining opera - tions, emphasising the need to transition to more sustainable and less invasive extraction techniques. Additionally, the new legal framework prioritis - es the protection and sustainable use of water resources in mining activities. These reforms represent a paradigm shift in Mexico’s approach to mining governance, prioritising ecological preservation and the protection of human rights. 2.3 Impact of Community Relations on Mining Projects In Mexico, the issue of community relations in mining projects is of great importance and is subject to specific regulations and an increas - ing focus on corporate social responsibility. The issue is even developed at the constitutional lev - el and criteria have been defined by the Supreme Court of Justice. Article 6° of the Mining Law contemplates the obligation to carry out a prior, free and informed consultation process with indigenous and Afro- Mexican people or communities in the area of the mining concessions. Some considerations of the consultation are:
• The consultation will be carried out under the direction of the Ministry. • The consultation must adhere to the princi - ples of being prior, free, informed, adequate, and conducted in good faith, and be simulta - neous and supplementary to that required for obtaining the environmental impact state - ment, which must include information on the social impact study; however, said study will only be submitted after the mining conces - sion bid has been awarded. • The cost will be covered in advance by the applicant for the mining concession. The recipient of a new concession in an area with existing indigenous or Afro-Mexican peo - ples or communities must sign an agreement to obtain the land use permit as well as to pay a consideration of at least 5% of the profits from the mining activity to the affected community, so the agreements signed with the communities for granting a new concession will have a fixed legal basis rather than being subject to discretionary criteria. Additionally, the new legal framework priori - ties the protection and sustainable use of water resources in mining activities. Concessions and permits are now subject to stricter conditions to ensure that mining operations do not com - promise water availability, quality, or equitable access for communities. 2.4 Prior and Informed Consultation on Mining Projects A prior and informed consultation is mandatory in Mexico. Article 6° of the Mining Law contem - plates the obligation to carry out a prior, free and informed consultation process with indigenous and Afro-Mexican people or communities in the area of the mining concessions. Some consid - erations of the consultation are:
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