The Mexican Geological Service will concentrate mining exploration in Mexico, according to recent changes to the Mining Law.
This new Law was approved on April 28, 2023 by the Senate, which was the reviewing Chamber after the initiative was approved on April 20 in the Chamber of Deputies.
The Mexican Geological Service is a decentralized public agency with its own legal personality and assets, coordinated sectorially by the Ministry of Economy (Secretaría), whose purpose is, among others, to guarantee a sustainable use of mineral resources.
As a result of the changes, it is now the Secretariat’s responsibility to direct the exploration of the national territory in order to identify and quantify the potential mineral resources of the Nation, through exploration orders issued to the Mexican Geological Service, which must be published in the Official Gazette of the Federation.
The orders granted will not be valid.
In order to geographically determine the exploration, the regulations of this Law will form a deliberative body that will cooperate with the Secretary in the definition of the national mining exploration policy.
Mexican Geological Service
For reasons of public utility or for the satisfaction of the country’s future needs, mining reserve zones may be declared by decree of the Federal Executive published in the Official Gazette of the Federation.
In addition, according to the new Mining Law, mining concession and assignment titles and decrees declaring mining reserve zones will be issued as long as the conditions and requirements established by this Law and its Regulations are met, without prejudice to third parties.
On the other hand, the person who has information from which it can be inferred that in an unassigned or concessioned lot there are minerals or substances that are not strategic or reserved to the State, may present it to the Secretariat so that it may determine the convenience of ordering the Mexican Geological Service to carry out the exploration.
Then, the Mexican Geological Service may enter into a collaboration agreement with such person for the exploration of the lot in question, with a non-extendable term of up to five years.
Finally, in the event that, as a result of the exploration, it is determined that there are economically exploitable minerals or substances, the Mexican Geological Service will propose to the Secretary to carry out the corresponding contest, in which the person referred to in the previous paragraph will have the right to obtain the concession if it offers, at least, 90% of the highest proposal and complies with all the requirements of the Law to obtain the concession.
