Mexico's President Sheinbaum has announced that her government will review a controversial bill, approved by the lower chamber of Congress in August, which aims to ban open-pit mining. The proposed legislation also seeks to prohibit fracking and restrict water use in resource-scarce areas (with the exception of domestic water use in densely populated areas). In a statement, Sheinbaum noted that the review would focus on ensuring environmental protection without interference from corporate interests.
Mexico's former President Lopez took a hard line on mining, nationalizing lithium mines and canceling concessions (currently in arbitration), as well as restricting new open-pit mines with environmental concerns and proposing this bill. However, the bill to ban open-pit mining was strongly opposed by the Mexican Chamber of Mines. Based on the fact that open-pit mining accounts for 60 percent of the value of Mexico's national mining and metallurgical production, the Chamber has warned that a ban could cause Mexico's GDP to contract by one percent and put nearly 200,000 jobs at risk.
Mexico has many large open-pit mines, such as Southern Copper's Buenavista copper mine, Newmont's Peñasquito, Fresnillo's two gold and silver mines, and several other mines of Grupo Industriale de Penoles. The viability of some projects hinges on open-pit plans, such as the partnership between Teck Resources and Eagle Mining in the city of San Nicolas. Sheinbaum said the review process will fully weigh national development goals against environmental sustainability.
For mining companies going abroad to Mexico, it is important to follow the progress of the review and adjust their mining methods according to the latest regulations. In addition, they should also pay more attention to environmental protection in their daily mining work, and implement the concept of sustainable development through innovative mining technology.
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