Mexico’s Congress, dominated by the party in power, approved laws related to the mining industry, which according to mining organizations and civil society will affect companies in the sector. A challenge is predicted in the courts, as the Senate has been accused of operating in an "irregular session."
On April 29, the party in power, MORENA, and other political parties allied to the President of the Republic, chose the alternate seat of the Senate to meet behind closed doors without the opposition political parties and approved 20 laws, including those related to the mining industry.
"In less than 15 minutes, a package of modifications to mining practice was voted on that does not consult one of the main affected segments: indigenous groups and native peoples," the opposition political party, PAN, said in a statement.
In a joint press release from civil organizations such as the Frente Cívico Nacional, Poder Ciudadano, Sí por México, Sociedad Civil México, Unidos por México y UNE México reported "we want to express our indignation at the recent irregular session held by the senators from the ruling coalition."
This "session is a violation of the Senate regulations, so all the laws approved could be challenged" in the Supreme Court of Justice of the Nation (SCJN).
Days prior to the Senate's approval, Mexico’s Banco Base reported on the Canadian government's complaint to the changes to the law and indicated that "the risk that Canada will initiate a formal consultation process (under the USMCA) if the reform initiative is approved."
The laws approved reduce the concessions from 50 to 30 years. To obtain the concession, the companies must be approved by the population of the community. Grounds for cancellation of concessions are established. The concessions will be conditional on the availability of water in the locality.
The changes to the mining law were promoted by the President of the Republic, Andres Manuel Lopez Obrador, with the slogan of "recovering the rectory of the State over minerals." He said that in his government (in force since December 2018, that is, for 4.5 years) he has not granted any new mining concessions.
For the new laws to enter into force, the President of the Republic must publish the laws in the Official Gazette (DOF).