Mining Law reform worries Canada
The reform to Mexico‘s Mining Law approved by the Chamber of Deputies, but still pending ratification in the Senate, is of concern to the Canadian government.
This was stated by Mary Ng, Canada’s Minister of Small Business, Export Promotion and International Trade, to Mexico’s Secretary of Economy, Raquel Buenrostro.
The reform proposes a 30-year term for mining concessions, extendable twice, each time for 25 years (the second time with a bidding process, giving priority to the concession holder). For existing concessions, the 25 + 25 year extension would apply.
Currently, the Mining Law establishes that concessions will have a duration of 50 years and will be extended for another 50 years if their holders do not incur in the foreseen causes for cancellation.
“Minister Ng expressed her concerns about Mexico’s proposed mining reforms, which could affect Canadian investment in Mexico’s mining sector, as well as the potential impacts on North American competitiveness and supply chain resilience,” said a Canadian government press release.
“The Minister reiterated the importance of conducting broad and transparent consultations with all stakeholders regarding the proposed reforms, including Canadian companies, which represent the largest group of foreign investors in Mexico’s mining sector,” it added.
Mining Law Reform
Ng reiterated the important contributions of Canadian mining companies to the Mexican economy, and stressed the need for Canada and Mexico to work even more closely together, given the growing importance of mining and critical minerals to the clean economy of the future.
To this end, Ng urged Mexico to ensure that they are upholding the spirit of the commitments made by Leaders at the North American Leaders’ Summit and the Mexico-U.S.-Canada Agreement (USMCA).
Ng expressed his enthusiasm to host Buenrostro in Canada on June 12-13, 2023 for a bilateral visit, which will include a meeting of the Canada-Mexico High Level Economic Dialogue.