Factbox: Changes to Mexico mining law set to nationalize lithium resources - Reuters

Opposition legislators celebrate after a reform of the electricity sector, defended by Mexico's President Andres Manuel Lopez Obrador, failed to pass the lower house of Congress, in Mexico City, Mexico April 17, 2022. REUTERS/Luis Cortes

MEXICO CITY, April 18 (Reuters) - Mexico's Congress opened debate on Monday on an amendment to the country's mining law presented by President Andres Manuel Lopez Obrador which aims to nationalize lithium reserves.

The proposal had been included in a broader bill that sought a constitutional amendment to tighten state control of energy production, but which was defeated in Congress on Sunday.

Mexico currently lacks commercial lithium production but could have potentially lucrative deposits in clay-based soils. read more

The bill has sparked concern it could pave the way for the government to take control of other minerals.

Here are some key points of the bill:

MINING LAW

The proposal would alter Mexico's Mining Law, passed in 1992. President Lopez Obrador has slammed the law for prioritizing private companies, especially foreign corporations, over Mexican interests.

The proposed bill would prohibit all private participation in the lithium market.

The proposal also outlines the possibility for the state to take over "other minerals declared strategic by the federal government."

REGULATOR

The bill does not specify which area of the state would oversee lithium production. Lopez Obrador said Monday the Finance Ministry, Economy Ministry or Energy Ministry could be put in charge of a state lithium company.

The company would be created within 90 working days of the bill's approval, according to the text, and the Mexican Geological Service (SGM) would assist in locating deposits.

OPPOSITION

Close to a dozen foreign companies currently hold concessions to explore potential lithium deposits, according to media reports.

Critics of the bill say that the deposits already belong to the state under existing laws and that the proposal will only serve to force out private investment.

source: https://www.reuters.com/world/americas/changes-mexico-mining-law-set-nationalize-lithium-resources-2022-04-18/

Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.