The reform, promoted by the federal government of President Andres Manuel Lopez Obrador, shortens concessions within the mining sector to 30 years from 50 and tightens extraction permits for water, because the nation faces prolonged shortages and warmer local weather.
Camimex President Jaime Gutierrez mentioned in a presentation that investments this yr would largely go towards expansions and modifications of present mines, because of the “nice limitation when it comes to new initiatives.”
Increased worldwide costs for uncooked supplies this yr ought to usher in larger revenue for native producers, he added, after a “difficult” 2023 as a consequence of unfavorable world traits and the impact of the brand new regulation.
Mexico’s metals manufacturing was price some 261.1 billion Mexican pesos ($14.7 billion) final yr in keeping with Camimex, down 18% from 2022, whereas the sector’s tax contributions fell 32% year-on-year.
Gutierrez mentioned business representatives had reached out to officers of Mexican President-elect Claudia Sheinbaum, set to take workplace in October, with their issues concerning the sector.
“I consider she (Sheinbaum) has a transparent consciousness of the necessity to enhance financial prospects within the nation and that this may solely be attainable if she helps mining,” Gutierrez mentioned.
Camimex brings collectively the nation’s largest business gamers, reminiscent of Grupo Mexico, one of many world’s prime copper producers, and Industrias Peñoles, one of many largest producers of refined silver.
Mexico’s authorities has clashed with a number of miners this yr, reminiscent of Vulcan Supplies, whose limestone mine positioned close to common Caribbean vacationer resorts the federal government mentioned was inflicting environmental injury, which the agency denied.
Mexico is the world’s prime silver producer and a serious provider of gold and copper. Its mining business fuels some 2.5% of gross home product.
($1 = 17.8084 Mexican pesos)
(By Marion Giraldo and Sarah Morland; Enhancing by Anthony Esposito and Sandra Maler)