Plan Mexico promises reactivation of mining sector

Wednesday, January 15, 2025

In addition to major infrastructure initiatives, the five-year public-private investment program Plan

Mexico, presented by President Claudia Sheinbaum this week, includes incentives and mixed

investment projects for the mining sector.

The final section of a preliminary version of the plan, which details the goals and actions for each

strategic sector, emphasizes the need to replace 20% of copper wire and spring imports through joint

ventures. It also highlights the development of graphite, zinc, barite, manganese and tungsten. Mixed

investment schemes for lithium are also part of the proposal.

The plan specifies that the ministry of economy must reform the mining law within 100 days to enable

private exploration and establish a regulatory framework distinct from concessions for open-pit

mining.

Various industry organizations had previously raised these concerns with authorities, deeming them

critical for revitalizing a sector that significantly contributes to GDP.

Within three months, the SE also plans to mandate the inclusion of social impact statements in all

mining-related activities.

Additionally, the ministry aims to create a joint venture to produce copper rods, a flagship project of

Plan Mexico. This venture will encompass smelting, refining and the construction of a wire rod and

cable plant in Sonora, recognized as a pro-mining state.

By 2027, the ministry intends to implement a strategy for exploring strategic minerals, securing

supplies and establishing a fund to benefit mining communities.

Environment ministry Semarnat is tasked with reducing processing times for environmental impact

assessments by 2025 to facilitate project advancement.

An economy ministry spokesperson did not respond to BNamericas when asked to provide details of

these actions.

According to the draft plan, Grupo México is expected to announce an investment under the Sonora

Plan for clean energy in the coming weeks. However, a company spokesperson could not

immediately offer specifics.

Mining chamber Camimex also did not respond to requests for its views, while a representative of the

association of mining, metallurgical and geological engineers (AIMMGM) stated that more

information was needed before commenting further, noting that “general outlines are still

forthcoming.”

Despite this, industry stakeholders who accessed the document expressed optimism on LinkedIn

regarding the plan’s mining goals and actions.Juan Dobarganes, a geological engineer and director of the consultancy Geotecx in Guanajuato,

wrote: “One very good thing that we hope will be approved is that private companies will once again

carry out mining exploration.”

“However, it is not clear how the different schemes or concessions for open-pit mining will be

[structured], but the essential thing is that this type of mining is not prohibited per se, for which

sufficient environmental and social conditions must be set so that they can comply.”

Alejandro Gracida, a geologist from Sonora, added: “for us as miners, it includes excellent news:

mining exploration can be carried out by private individuals; it will not be exclusive to the Mexican

geological service [SGM].

This change will be made in less than 100 days. Also, in less than a year, the environmental impact

assessment will be easier to obtain. This is excellent news for mining exploration in our country,” he

added.

The executive branch and other authorities must still confirm these actions and provide further

details, which could help reinvigorate the mining sector.

During Sheinbaum’s term, which began on October 1, the mining industry has faced challenges due

to policies freezing concessions and slowing down permit processing. The May 2023 reforms, which

granted exclusive exploration rights to the SGM, further restricted private participation and

hampered mineral exploration.

Additionally, the approval of increased special and extraordinary mining royalties – from 7.5% to 8.5%

and from 0.5% to 1.0%, respectively – has raised the tax burden on mining companies, negatively

affecting investment prospects.

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