New Mining Law in Mexico: mining concessions to be awarded on a competitive basis
Mexico‘s new Mining Law, approved at the end of last March, establishes new regulations for granting mining concessions on a competitive basis.
The following is part of its content:
When an area inhabited or occupied by an indigenous or Afro-Mexican people or community, or by any other type of settlement, is located on land subject to a contest, the person winning the contest is obliged to enter into an agreement with the corresponding community or people.
The agreement is to obtain the permission to use the land, as well as to cover a consideration of at least 5% of the amount resulting from deducting from the tax result referred to in the Income Tax Law, the amounts covered by the person holding the concession for non-deductible contributions for the purposes of such tax.
For the above purposes, once the concession has been obtained, the concession holder will have the obligation to deliver to the community in question a copy of the corresponding declarations.
The resources of the consideration will be deposited in an account to be administered by the community in accordance with the operating rules issued by the Ministry of Economy.
Likewise, mining reserve zones may be declared those determined by the Mexican Geological Service, when justified based on the mining potential of the area, by means of semi-detailed exploration works and works, and the cause of public utility is accredited or when the minerals or substances are considered within the strategic areas in charge of the State.
New Mining Law
In the case of mining reserve zones determined based on the exploration carried out by the Mexican Geological Service or with the support of the Ministry of Economy, whose suppression is decreed, mining concessions may be granted through a bidding process, as long as there is no public utility cause or in the case of minerals or substances considered within the strategic areas in charge of the State.
It also incorporates the process for the orderly closure of mines, which will include a work plan for such closure, in order to have the mandatory measures so that at the end of the mining activity it is carried out in order and the repair, restoration or remediation is carried out depending on the impacts caused.
