Open-pit mining should not be banned: Camimex

Mexico City. Banning open-pit mining as proposed by the Constitutional Reform Initiative is a serious risk for the country’s economy, said the Mexican Mining Chamber (Camimex).

“If approved by both chambers, it will have devastating consequences for Mexico’s development and economic stability. This action would limit our country’s ability to transform its natural resources into development opportunities and promote the transition to clean energy, raising costs and affecting competitiveness,” the organization said in a statement.

He stressed that Mexican minerals are essential in more than 70 industries, such as electromobility, automotive, steel, construction, chemical, medical, among others.

The organization that brings together the largest mining companies in the country highlighted that 60 percent of the value of national mining and metallurgical production comes from open-pit mines.

Camimex assured that its members operate with strict environmental standards, always seeking continuous improvement.

He explained that if the reform continues in its current form, over time there is a serious risk of losing more than a million formal jobs, having an impact on the development indices of more than 690 mining (rural) communities, and compromising more than 30 billion pesos in various fiscal contributions to the Federal Public Treasury.

In addition, he stressed, this would lead to a possible economic contraction of 250 billion pesos annually (1 percent of the national GDP), and would eliminate Mexico’s status as a mineral producer, turning it into an importer. These imports would grow by 132 percent, causing a trade deficit of 93 billion pesos.

Mexico’s role as a producer of nine minerals critical to the North American region would also be restricted within the framework of the energy transition. In addition, the US and Canada allow and regulate open-pit mining.

Similarly, he said, formal mining would be discouraged and informal mining operations, which lack safety and environmental standards, would persist.

“Open-pit mining should NOT be banned, but rather encouraged to consolidate Mexico’s position as a producer of essential minerals. It is a serious activity that is practiced throughout the world, and operating responsibly and safely is the duty of all stakeholders. Responsible industry should not be penalized, nor should the country’s competitiveness be limited,” he said.