Mining reform plan provides for penalties of up to 15 years in prison

The mining reform proposed by the federal Executive establishes penalties that can reach up to 15 years in prison, plus fines equivalent to 5% of annual income and an additional amount of 1 million 037,400 pesos.

Presented at the end of March, the initiative proposes reducing the period of a mining concession from 50 to 15 years, renewable for another similar period, and basing the awarding of concessions on public tenders.

“It will be punished with a penalty of 5 to 15 years in prison and a fine of 5% of the total income plus 12,000 times the daily value of the Measurement and Update Unit (UMA), who transfers minerals, substances or metallurgical derivatives without the corresponding permits”, the reform proposes.

The UMA is the economic reference in pesos to determine the amount of payment of the obligations and assumptions provided for in federal laws, of the federative entities, as well as in the legal provisions that emanate from all of the above.

In addition, considering the current value of the UMA, the proposed penalties for mining crimes could range from 5 to 10 years in prison, plus fines equivalent to 5% of annual income and an additional amount of 1 million 037,400 pesos.

In this regard, the proposal says: “It will be punished with a penalty of 5 to 10 years in prison and a fine of 5% of the total annual income plus 10,000 times the daily value of the UMA, regardless of the administrative sanctions that proceed, to whom extract minerals or substances subject to the application of this Law without being the holder of the mining concession, or alienate or traffic in any way minerals and metallurgical derivatives without having the corresponding concession.

The same sanction will be applied to whoever, in order to obtain or keep the mining concession, exhibits false documentation; or undermines the physical safety of its workers; by omitting compliance with the provisions of this Law, its Regulations or the applicable regulations on mine safety.

Finally, the fines for offenders can range from 1% of annual income plus 518,700 pesos to up to 4% of annual income plus 1,037,400 pesos.

Penal sanctions may also be imposed in mining matters when: the mineral is extracted, disposed of and/or trafficked when no mining concession is granted; false documentation is presented in mining concession applications, and when the safety of employees is diminished due to non-compliance with the relevant regulations.

On the other hand, the planet initiative is carrying out a social impact study that must be presented by the winners of a bidding contest to determine the probable effects that mining activity could have on people’s daily lives and establish prevention measures, real mitigation and compensation, effectively guaranteed by a letter of credit.

In addition, the lack of reporting on possible damages or risks to the ecological balance, not having permits, concessions or authorizations from other authorities, or closure or waste management programs are specified and added as causes for cancellation of mining concessions. .

roberto.morales@eleconomista.mx