Mexico's Mining Reform comes into force

On May 8, the President of Mexico enacted the Decree which amends, adds to and revokes several provisions of the Mining Law, the National Waters Law, the General Law of Ecological Balance and Environmental Protection and the General Law for the Prevention and Integral Management of Waste, regarding mining and water concessions (the "Decree"). For further detail on the contents of the Decree, please refer to the alert "Mexico approves Mining Reform" in Hogan Lovells Engage.

With the foregoing, the provisions contained in the Decree are effective as of today, May 9, as well as the term for the competent authorities to make the adjustments to the regulatory norms of the laws that were amended by the Decree. Among the most relevant aspects of the enactment in question are the following:

1. The President of the Republic must amend the Regulations in the matter to be consistent with the Decree, within the following 180 days (Fourth transitory article).
2. Concessions within Natural Protected Areas along with those to explore and exploit mercury shall not be extended (Seventh transitory article).
3. The holders of mining concessions must file within the following 365 days: (i) a guarantee for possible damages generated by their mining activities before the Ministry of Economy; and (ii) their Mine Restoration, Closure and Post-Closure Programs, before the Ministry the Environment and Natural Resources for its approval (Tenth transitory article).
4. Mining concessionaires must request the National Water Commission to modify their use from "industrial" to "industrial in mining" (Thirteenth transitory article).

Next steps

With the entry into force of the Decree, the concession holders must comply with its contents and carry out the applicable actions within the terms set forth in the transitory articles; however, those affected by the entry into force of the Decree, may challenge its contents through the amparo lawsuit, within the following periods:

1. 30 business days after the entry into force of the Decreet, in the event that an effect is generated by its mere incorporation into the legal framework; or
2. 15 business days after the first act of application of the contents of the Mining Reform by any of the competent authorities.

In both cases, raising arguments of constitutionality related to defects in the legislative process in both Chambers, acquired rights, retroactive application of the Law and differential treatment with other legal subjects, among others.

Hogan Lovells has a multidisciplinary team of specialists to review, determine impacts, establish and implement compliance actions, or to challenge the provisions of the Decree, as the case may be.

Authored by: Mauricio Llamas, Mauricio Villegas, Sofía de Llano, and Santiago Contró.