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Mining concession period reduced; Deputies send reform to the Senate

With the criticism of PAN, PRI and PRD, Morena and their allies approved fast track and with waiver of formalities, in general, a new reform proposal to Mining Law which reduces the concessions to 30 years, with the option of extending them on a single occasion for a term of 25 years. Likewise, it allows the prevention and remediation of mining concessionaires in the event of damage.

The initiative was approved with 290 votes in favor, 186 against and one abstention. Among the votes in favor were those of Citizen movement and even that of the president of the Chamber of Deputiesthe panista Santiago Creel.

The reform to the Mining Law and other regulations reduces the validity of mining concessions from 50 to 30 years, with the possibility of extending them for another 25 years and, at the end of that period, in case of participating in the new bidding for the same lot, the holder would have preference for other 25 non-extendable years. In this way, the total duration of the concession could reach 80 years and not the total 100 years currently established by law, between the concession period and extension.

This proposal is similar to the initiative presented by President Andrés Manuel López Obrador, which established a period of 15 years, which could be extended for a single occasion.

By waiving procedures, the legislative majority in San Lázaro presented the opinion on reforms to the Mining Law, the National Water Law, the General Law of Ecological Balance and Environmental Protection and the General Law for the Prevention and Integral Management of Waste, in Matters of Concessions for Mining and Water.

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In justifying the document, the president of the Energy CommissionManuel Rodríguez, from Morena, assured that the initiative intends to grant the rectory of the State in mining matters and combat the abuse of private companies in the exploitation of the Nation’s assets.

He said that the proposal establishes a compensation to the towns and communities located in the mining areas of at least 5% of the profits obtained from the concession activity.

In contrast, PRI representative Ildefonso Guajardo pointed out that with articles 10 and 10 bis of the reform, Mexican mining will lose its potential, by leaving the monopoly condition of exploration in the hands of the Mexican Geological Service.

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