As one of the world’s leading producers of gold and silver, Mexico has a rich mining history dating back to the colonial era. With recent reforms, the government is reshaping the sector to enhance transparency and community engagement, while maintaining a legal framework that attracts domestic and international investment.
Legal Framework - Mexico’s mining sector is governed by a number of laws, most particularly the Mining Law of 1992 as significantly amended in May 2023. These reforms aim to ensure greater social and environmental responsibility, strengthen government oversight, and modernize concession practices.
Mining Rights - Mining rights are granted by the Secretariat of Economy (SecretarÃa de EconomÃa) through public bidding, replacing the first-come-first-served approach. Mining concessions now cover both exploration and extraction phases. They are granted for a maximum term of 30 years, with a single extension of up to 25 years.
Foreign Ownership - Companies must establish a legal entity in Mexico to hold mining rights, but there is no requirement for local ownership or state participation - except for strategic minerals like lithium which are reserved for the State. Foreign-owned companies must also register with and report certain changes to the Foreign Investment Authority.
Taxes and Fees – Mexico applies a 7.5% royalty on earnings before interest, taxes, depreciation, and amortization (EBITDA), across most minerals. Further, a 0.5% royalty on gross revenues applies specifically to gold, silver, and platinum. Companies also pay a Special Mining Duty (Derecho Especial Minero), levied progressively on profits over a threshold. Companies must contribute to development funds for local communities.
Environmental and Social - Companies must: (i) conduct environmental impact assessments and social impact assessments, (ii) comply with mandatory mine restoration and closure programs, coupled with guarantees, and (iii) consult with indigenous and Afro-Mexican communities before initiating projects.
Why Mexico? - Mexico remains a mining powerhouse with rich resources, infrastructure, and a skilled labor force. While the 2023 reforms introduced new requirements, these generally align with international standards. Mexico’s political stability and its participation in trade agreements such as the USMCA further enhance its attractiveness to investors.
Why Serus? - At Serus, our bilingual (Esp-Eng) team brings deep experience in Mexican mining, helping clients navigate the legal and regulatory complexities. We are an international law firm committed to delivering high-quality, cost-effective legal services.
For support in your Mexican mining projects, contact us at info@seruslegal.com.This publication contains general legal information and is subject to legal review.