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Mexico to review proposed ban on open-pit mining

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President Claudia Sheinbaum has announced a review of the controversial bill to ban open-pit mining in Mexico, as the government looks to capitalize on green energy metals.

“In the case of open-pit mining, it is also important to review it. Why? For example, sand mines, which produce cement, are open-pit mines; lithium, which we care a lot about producing, is open-pit mining. So, we need to review the particularity of how the constitutional reform was achieved”

— President Claudia Sheinbaum, conference, December 6, 2024

In August 2024, a committee in Mexico’s lower house of Congress approved two constitutional reforms that would prohibit open-pit mining and fracking in the country.

President Sheinbaum emphasized the need for a review, not because of “lobbies of large companies”, but the importance of mining to the economy of Mexico and environmental protections.

The mining industry is an extremely important contributor to Mexico’s economy:

Mexico is a large exporter of mining products, with a trade surplus of US$12.8 billion in 2022
exports of minerals and ores from Mexico totaled US$17.6 billion in 2022, growing 6% since 2017
more than 370,000 people work in the mining industry directly, while millions more work indirectly in related industries like transportation, logistics, and equipment manufacturing

Mexico mining production and market size - The Oregon Group - Critical Minerals and Energy Intelligence

Mexico’s previous, popular president Andrés Manuel López Obrador (commonly referred to as AMLO) embraced anti-mining rhetoric and policies, including:

refusal to offer any new mining concessions since he took office in 2018
canceling lithium concession and a presidential decree threatening to nationalise lithium mining in February 2023
a proposal to ban open-pit mining (and fracking)
the Mining Reform shortening mining concession renewal terms, removing preferential terms, tighter permitting rules, and many other amendments

President Sheinbaum has signaled a more pragmatic approach from her predecessor to the mining industry, which has already seen more than US$2.5billion investment announced in just two Mexico silver mining deals since her election in June 2024.

Our analysis on mining in Mexico:

Mining in Mexico, no more uncertainty

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