Mexican miners warn of 'major delays' from environment, water rules

[MEXICO CITY] Mexican mining companies face "major delays" with environmental and water permits, the head of sector chamber Camimex said on Monday, as the metals sector seeks to boost operations in the one of the country's biggest industries.

Camimex President Fernando Alanis told reporters during a webcast presentation touting a new sustainability report that the delays were especially pronounced for getting the country's environment ministry Semarnat to approve environmental impact statements for mining projects.

"This is definitely an issue," said Mr Alanis. "Specifically, with Semarnat we have major delays," he said.

He also noted significant mining permitting delays with government water agency CONAGUA.

Mr Alanis said the chamber had held talks with Semarnat's deputy minister, Tonatiuh Herrera, and that more meetings were scheduled.

Mining industry executives in Mexico say Semarnat layoffs over the past couple years, part of government spending cuts under President Andres Manuel Lopez Obrador, reduced the number of officials who can process permits.

The environment ministry and CONAGUA did not immediately respond to a request for comment.

Despite regulatory delays, Mexican mining investment is seen rebounding this year, helped by higher prices for minerals, with expected growth of more than 40 per cent to reach some US$5 billion compared with US$3.5 billion in 2020.

Mexico is the world's biggest silver producer, accounting for nearly a quarter of global output, as well as a top ten producer of a dozen other minerals, including gold, copper and zinc.

It represents about 2.3 per cent of the country's overall economic activity.

Mr Lopez Obrador's government declared mining an essential industry last year at the height of the coronavirus pandemic, after a mandated shutdown of two months. However, the president says previous governments offered too much land under concession to miners.

He has stressed that no new land concessions will be authorised for mining during his term.

REUTERS