Mexico’s Open-Pit Mining Future Under Review Amid Economic Concerns

“Open-pit mining warrants a thorough review, as activities such as sand extraction for cement production and lithium mining — critical for national development — are conducted using this method. It is vital to assess the specifics of the constitutional reform’s provisions,” Sheinbaum said in a statement.

Environmental Safeguards versus Corporate Interests

She emphasized that the review will focus on ensuring environmental protection and is independent of corporate interests.

Industry Resistance to Mining Ban

The Mexican Mining Chamber (Camimex) has voiced strong opposition to the proposed ban. Open-pit mining accounts for 60% of the value of Mexico’s national mining and metallurgical production. Camimex warns that the prohibition could lead to a 1% contraction in the country’s GDP and jeopardize nearly 200,000 jobs.

Engagement with Mining Sector Leaders

Sheinbaum’s announcement follows a post by Minister of Economy Marcelo Ebrard on X, where he reported a “productive meeting” with representatives of Mexico’s mining sector, including Camimex President Pedro Rivero. The discussions centred on the exploration and production of strategic minerals, although specific details were not disclosed.

Key Players in Mexico’s Mining Landscape

Mexico’s top open-pit mines include Southern Copper’s Buenavista copper mine, Newmont’s (TSX: NGT) (NYSE: NEM) Peñasquito, two of Fresnillo’s (LON: FRES) gold-silver mines, and several other sites owned by Industrias Peñoles.

Some projects, including the San Nicolas partnership between Teck Resources (TSX: TECK.A, TECK.B)(NYSE: TECK) and Agnico Eagle Mines (TSE, NYSE: AEM), rely on open-pit plans for their viability.

A Shift from the Previous Administration’s Stance

Sheinbaum’s predecessor, Andrés Manuel López Obrador (AMLO), took a firm stance against the mining sector. Under his administration, lithium was nationalized, concessions were cancelled—a decision now under arbitration—and a state lithium mining company was established.

Restrictions were also imposed on permitting new open-pit mines, largely citing environmental concerns, and a bill was proposed that Sheinbaum will now review.

Balancing Development with Environmental Concerns

Sheinbaum has indicated that the review process will be comprehensive, aiming to balance national development goals with environmental sustainability.