Mining reform would affect more than 70 industrial sectors: Camimex

The mining reform presented by the Federal Executive to the Union Congress would affect more than 70 industrial sectors, affirmed the Mining Chamber of Mexico (Camimex).

Among the proposed changes is reducing the period of a concession from 50 to 15 years, renewable for another similar period, and basing the awarding of concessions on public tenders.

“We believe that not only would the mining industry be affected, but also would affect more than 70 industrial sectors”, said José Jaime Gutiérrez, president of the Camimexgiving as an example electric power, the iron and steel industry, chemicals, the steel sector, the automotive industry, the pharmaceutical sector and construction.

The mining industry in Mexico is the fifth largest generator of foreign exchange and provides more than 417,000 direct jobs and close to 3 million indirect jobs, according to Camimex.

“The damage that we would have would definitely be in the lack of confidence to continue investing in the country,” added Gutiérrez.

He also highlighted that mining generates annual tax contributions for around 70,000 million pesos.

Indeed, as part of its arguments when presenting an initiative to reform the Mining Law and other laws related to this industry, the federal government stated that the income from mining represents a little more than 72,923 million pesos (0.4% of the GDP).

But, in contrast to Camimex, the government immediately added: “This contribution to State income is far from the income received by those who participate in the mining sector.”

Only in 2019, they received income for 2.3% of the Gross Domestic Product (GDP), in addition to being the fifth activity with the highest generation of foreign currency, with a contribution of 18,405 million dollars.

In 2020, during the pandemic, as part of the policies implemented by the Mexican government, the agreement was published in the Official Gazette of the Federation (DOF) on May 15, 2020, in which mining is declared an essential activity. , due to its importance as a supplier of metals and supplies for electrical and electronic use that increased its intensive use due to the need for remote communications, home office, etc.

In addition, Mexico is a worldwide supplier of supplies for medical and pharmaceutical equipment, such as the manufacture of fluorite-based respiratory devices and inhalers for the treatment of essential respiratory diseases during the pandemic, to name a few.

The foregoing created the bases for mining in Mexico, by being declared as essential activity in all its areas, did not suspend its activities.

From the perspective of the government of Mexico, this measure guaranteed the continuity of this industry, preserving its attractiveness for investors by observing a clear sign of support for this industry in the country.

roberto.morales@eleconomista.mx