Mexico Secretary of Economy analyzes canceling 5 thousand mining concessions

Undersecretary of Mining, Francisco Quiroga Fernandez revealed that the Ministry of Economy (SE) has a backlog of 20 thousand applications related to mining companies in the country, of which the government already analyzes the cancellation of five thousand concessions.

After his presentation La Minería en México, Motor of the economic development of the country. Axis of public policy 2018-2024, within the framework of the Mexico Mining 2019 Forum, Quiroga told reporters:

“We have more than 20 thousand left pending by previous administration… More than five thousand with cancellations. We are reviewing them to ensure that they were done correctly and that the rights are not affected, as well as not generating greater uncertainty and not generating greater paperwork with the challenges. We have a large backlog. Every concession that is not worked is a failure of public policy, “he said.

The official, who served as director of Villacero, did not give details of the reasons for cancellation, but said they are in process.

Quiroga Fernández appeared before businessmen, specialists and national and foreign shareholders of the mining industry, who expressed their concerns on issues of insecurity and certainty in investments.

According to the former ArcelotMittal director, “the best certainty for investments is social shielding. In which the communities welcome the mining activity “.

“First, are the changes in the law, the introduction of the figure of the consultations. The consultations are one of the instruments we have to really do our activity in front of the communities, with the communities, not just get the yes from the communities, but involve them, to make them part of the process, either in the chain productive or as part of mining, “he said.

Then he added: “What is required to operate a mining unit is the support of the community. What is clear is that for a mining company to be viable, it must have the support of the community and the consultation is one of the means to classify it. “

Small producers must ally with large companies

On the other hand, the Undersecretary of Mining said that the objective of the government of Andrés Manuel López Obrador (AMLO) is that there should be a competitive regulatory burden with the rest of the countries in terms of taxes on mining companies. He said that royalties equivalent to 7.5% of profits, plus 5% in the case of the production of gold, silver and platinum, “really reach the mining communities, in a direct and transparent manner.”

On the integration of small and medium mining producers, the now official said that they have to seek alliance with the big producers.

“The great challenge to integrate small and medium-sized miners is to integrate them into the processes. Mining has very long investment horizons, it is very extensive in capital. Mining has to invest a lot of money, for a long time, without having the possibility of a return. The big challenge of the small and medium mining is to integrate in association with the biggest players to be part of this without being at the expense of economic cycles, “he explained.

Source: Proceso, El Financiero

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