Mining Reform In Mexico: Principal Amendments, Effect, And Implications For Foreign Investors

In Short

The Background: On May 8, 2023, Mexico published several amendments to laws relating to the country's mining industry.

The Result: The Mining Reform will have negative repercussions for foreign investors in Mexico and Mexican companies operating in the mining sector.

Looking Ahead: We expect the Mining Reform to be subject to various legal challenges, the nature of which will differ on a case-by-case basis.

On May 8, 2023, several amendments to laws concerning the mining industry, commonly referred to in the media as the "Structural Reform of the Mining Industry" (the "Mining Reform"), were published in the Official Federal Gazette. The Mining Reform imposes tighter regulations on the mining industry through amendments to the Mining Law (Ley Minera), the National Water Law (Ley de Aguas Nacionales), the General Law for Ecological Balance and Environmental Protection (Ley General de Equilibrio Ecológico y Protección al Ambiente) ("LGEEPA"), and the