Mexico: Mining Law Reform is published

Effective as of 20 April 2022

In brief

On 20 April 2022, the Decree amending and adding several provisions of the Mining Law, presented by the President of the United Mexican States on 17 April 2022 before the Chamber of Deputies ("Reform") was published in the Federal Official Gazette. The main purpose of the Reform is to exclusively reserve to the Mexican State the exploration, exploitation, benefit and use of lithium located in Mexican territory.


Contents

By means of the Reform, the exploration, exploitation, benefit and use of lithium are exclusively reserved for the Mexican State. By virtue of the foregoing, lithium is declared as public use and no concessions, licenses, contracts, permits or authorizations will be granted with respect to the exploration, exploitation, benefit and use of lithium and other minerals declared as strategic by the Mexican State, in terms of Articles 27 and 28 of the Mexican Constitution, to the entities established in Article 10 of the Mining Law (individuals and legal entities of Mexican nationality, ejidos and agrarian communities, indigenous groups and communities). Mining reserve zones are considered to be those in which there are lithium deposits and lithium is recognized as a national heritage.

Likewise, it is established that the exploration, exploitation, benefit and use of lithium will be carried out by the decentralized public agency determined by the Federal Executive Branch in terms of the applicable provisions. Such agency will manage and control the lithium economic value chains. It is also provided that the Mexican Geological Service will support said decentralized agency in connection with the location and recognition of geological areas where there are probable lithium reserves.

The public agency mentioned in the preceding paragraph will be created by the Federal Executive Branch within 90 business days following the effective date of the Reform (which is the day following its publication in the Federal Official Gazette).

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