Recommendations for companies that want to enter to the Mexican mining industry
Mexico is proudly a mining country with a world class mining industry. In June 2020, the Mexican Government recognized the “essential character” of the mining industry for our economy, and this is not a coincidence, our country is the first producer of Silver worldwide, we are as a country between the ten main producers in the world of 17 different metals including gold, copper, fluorite, salt and others. As a country, we have many strengths such as our strategic geographic location, our macroeconomic stability, our history and tradition as a mining country, extremely qualified workforce and world class mineral deposits. However, when investing in the Mexican Mining Industry, in addition to the traditional study of the rule of law, level of respect of the rights of investors, and judicial and regulatory process free of arbitrary government interference, it is always important to keep in mind the following:
a) First, the responsible mining industry in our country is very competitive, but very respectful of the rule of law, therefore, I highly recommend to make a deep analysis of the Mexican mining legal framework, which is bast, to have a better understanding of all the requirements related to the different stages of the mining process, whether is prospection, exploration, development, production and/or mine closure, including the provision of services to the mining companies as contractors or service providers.
b) Second, be aware that the modern mining industry in Mexico is very respectful of the rights of the stakeholders and related parties to the industry, this implies for obvious reasons the need to work in the “social license”, or the acceptance of a company or industry's standard business practices and operating procedures by its employees, stakeholders, and the general public, and for this, the practice and operation of any mining company interested in investing in Mexico should be done with strict respect of the human rights of everyone, including the respect and protection of the right of a safe and clean environment and when applicable, the respect for the rights of the indigenous communities.
c) Third, focus on the people. I invite you to strongly believe in Mexico, with a long-term vision, and in the indisputable fact that the women and men that are involved in the Mexican mining industry are amazing, hardworking and professional humans begins that work every day and believe in the benefits, necessity and the power of a responsible, safe, modern, inclusive, respectful of the gender equality and innovative industry that would help not only Mexico’s economy, but the Latin-American’s economy to flourish and to be prosperous, including obviously, at the same time, the creation of social and economic wealth for the mining company and their investors.
Please feel free to contact us in case you’d like to discuss further these recommendations.
Lic. Rubén Alberto Cano Balcorta