Grupo México seeks to end concessions freeze

Bnamericas Published: Friday, October 14, 2022
Grupo México seeks to end concessions freeze

Grupo México is aiming to overturn a freeze on new mineral concessions in Mexico following a change in leadership at the economy ministry.

The company – whose Southern Copper subsidiary is Mexico’s dominant copper producer – hopes to persuade new economy minister Raquel Buenrostro to end the moratorium, local news publication La Política Online reported.

President Andrés Manuel López Obrador (AMLO) has halted new concessions, claiming that swathes of the country were handed out to mining companies too easily by previous administrations.

Critics say the move threatens to cut the industry off at the knees by halting exploration in new areas.

Various Grupo México executives have welcomed the appointment of Buenrostro, the report said, without providing any names.

The move follows the resignation of Tatiana Clouthier from the role earlier in October.

AMLO has hinted at the possibility of making the suspension of new mineral concessions permanent, despite warnings this would undermine the future of the industry.

“The moratorium on mineral concessions hasn’t affected us. This moratorium is manageable over a period of six years, or one federal administration term, but if it goes to 12 years, or 18 years, it’s suicide,” Grupo México director of exploration Alfonso Martínez told a seminar earlier this year.

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