Mexico President-Elect Claudia Sheinbaum will not grant new open-pit mining concessions during her administration, according to her “100 Steps for Transformation” (Plan), published in July. The Plan also states that existing concessions will be evaluated and may continue, provided that they have the public’s approval and do not impact the environment (step 8 of the Plan).

In addition, the Plan foresees creating a system to transport treated water from cities to mines so that the mines do not use potable water in their processes. The Plan does not detail the cost of implementing this project, and it remains unclear how it would be financed.

Mexico’s refusal to grant any subway or open-pit mining concessions since 2019 has caused uncertainty and concern in the private sector. An executive of one of Mexico’s largest mining companies, which operates at least two mines located in Sonora, stated in 2022 that mining companies would run out of reserves from which to extract minerals if the administration continued refusing to grant new concessions. 

Furthermore, the Supreme Court of Justice has yet to resolve the suspensions requested against the reforms to the Mining Law published in 2023, which added grounds for revocation of concessions, the obligation for companies to obtain concessions for using or exploiting water during the mining processes, and a series of administrative obstacles, among others.

The mining sector and investors should wait for the Supreme Court’s pronouncement to determine next steps.