Mexico put into effect as of January 1, 2025 new changes to its mining royalties legislation.
In 2024, the GDP of mining of metallic and non-metallic minerals, except oil and gas was 261,928 million pesos, a year-on-year rise of 1.3%, considering pesos at 2018 prices, according to Inegi data.
Mining royalties
Among the main companies in the metallurgical sector in Mexico are Grupo Mexico, Met-Mex Peñoles and Fresnillo PLC. Cemex, Holcim-Apasco, Grupo Cementos Chihuahua, Cementos Fortaleza, Cemento Moctezuma and Cruz Azul stand out in cement production.
Mexican law provides for various mining royalties. These were recently modified through amendments to the Federal Law of Governmental Rights, published in the Official Journal of the Federation on December 19, 2024.
The changes became effective January 1, 2025.
The following are the mining royalties:
- Mining royalty of 8.5% on earnings before taxes, depreciation and interest.
- An extraordinary government royalty on precious metals, including gold and silver, of 1% of gross revenues.
- A mining royalty per hectare of concessioned land, which varies according to the year of the concession.
Among the new provisions, an additional royalty is established for holders of mining concessions that do not carry out works in accordance with the Federal Mining Law. If during a consecutive period of two years, within the first eleven years of the concession, no mining activities are developed, an additional royalty must be paid semi-annually. This will be equivalent to 50% of the maximum mining right in force.
In addition, if the non-compliance with the works continues, the penalty will be doubled as from the twelfth year.
Mexican production
The following is the GDP of metallic and non-metallic mineral mining in Mexico, except oil and gas, in billions of pesos at 2018 prices:
- 2018: 265.
- 2019: 255.
- 2020: 250.
- 2021: 262.
- 2022: 270.
- 2023: 259.
- 2024: 262.
The Foreign Investment Law allows foreign citizens and corporations to obtain mining concessions in Mexico. However, the Federal Mining Law establishes that these concessions can only be granted to Mexican citizens or corporations.
Therefore, in order to access a mining concession, foreign investors must create a subsidiary in Mexico. This is the only way in which they can participate directly in the Mexican mining sector.