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Mining operations in Mexico

Camimex‘s affiliated companies have 124 mining and metallurgical operations in 24 Mexican states.

Of this total, 53 are subway, 34 are open-pit, 6 are mixed and 31 are plants.

The type of mine -underground or open pit- is developed according to the geological characteristics of the deposit.

Camimex also highlights that Mexico has great mining potential.

In addition to contributing to the creation of jobs, generating welfare and development in more than 690 communities, attracting investments and contributing to the payment of taxes, the mining industry supplies raw materials to the entire national production chain.

In 2022, five minerals contributed 86.3% of the total national mining-metallurgical production. These are: gold (30.6%), copper (27.2%), silver (17.6%), zinc (7.1%) and iron pellets (3.8 percent).

Although the Foreign Investment Law provides that mining concessions may also be obtained by foreign citizens or foreign companies, the Mexican Mining Law provides that such concessions may only be granted to Mexican citizens or Mexican companies.

Thus, foreign citizens or foreign companies may only obtain mining concessions by establishing a subsidiary in Mexico.

Mining operations in Mexico

In April 2023, the Mexican government adopted a series of changes to the law governing mining operations in the country.

Under the new mining law, among other changes, the maximum duration of new mining concessions has been reduced from 50 to 30 years, the ability to obtain water extraction permits has been limited to some extent and a new tax on mining profits has been established for the benefit of local communities.

Government authorities will also be allowed to cancel concessions if they have not been worked within two years.

On the other hand, foreign investment in Mexican companies must comply with certain requirements set forth in the Foreign Investment Law.

Foreign investment of up to 100% in Mexican mining companies is permitted.

Companies with foreign investment in their capital stock must register in the National Registry of Foreign Investment maintained by the Ministry of Economy, and submit certain reports and notices, including in certain circumstances, and under the criteria determined by the Foreign Investment Law, an annual report and/or quarterly reports with respect to the operations carried out during the preceding fiscal year, which is necessary to renew their certificate of registration in such registry.

 

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