Canadian juniors in Mexico were blindsided by a new mining regime on Apr. 29, after the Mexican Senate rushed through a contentious bill that experts say will deter investment.
Under the new mining law, companies have to deal with an increased burden of pre-consultation, impact studies and water concessions, among other things. The new law also requires financial commitments (bonding) that will be difficult to meet for junior explorers.
The “aggressive” move by the government is “extremely damaging” to Mexico’s mining industry, says mining entrepreneur Ross Beaty, who’s made a career of investing in high-risk jurisdictions across Latin America, including Mexico. “It’s a very significant negative to Mexico’s previously good investment climate for mining.”
The Senate unanimously and with little debate approved two constitutional reforms and a new mining law which the Mexican mining chamber and the Canadian federal government had as recently as Apr. 26 admonished.
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