This desk notes that another round of scare-mongering has made its way to the English language media about Mexico and open pit mining. Here’s the link, here’s how it starts:
Mexican authorities announced that no more permits for new open-pit mining projects will be issued during López Obrador’s remaining government term, set to end in September 2024. Experts stressed that the ban on new permits poses a threat to investments and developing mining companies.
Mexico’s Minister of the Environment, María Luisa Albores, stressed that no more concessions will be granted for open-pit mining projects due to the negative impact on the environment and the adverse effects on the health of communities living nearby. In addition, the minister stated that many of the concessions already granted threaten 68 protected natural areas.
That note continues here and hey wowsers what a shock, it’s almost as if The IKN Weekly issue 707, out last Sunday December 4th, predicted this latest round of bunkum and nonsense would appear this week. Here below is the note we ran as part of the Regional Politics section of IKN707, with one small edit that changes nothing in the message:
Mexico: Mixed signals from SEMARNAT
A story that got plenty of traction among Mexico business wires this week was a comment made by the head of Mexico’s environmental agency SEMARNAT, María Luisa Albores, at a press conference that was called on a separate and currently controversial subject, that of the environmental permitting of the “Tren Maya”, a rail route planned for the South of the country (20). Aside from the main subject, Ms. Albores was asked about mining and said the following (translated, the exact message is important, too):
“The government of the Fourth Transformation (i.e. the AMLO government) will not award any more authorizations for open pit mining, due to its negative impacts in the environment and on human health.”
It was almost a side comment during a presser on a different subject but was pounced upon by the press for its potential scope and effect. In reality, two things are happening here:
- Ms Albores is merely repeating the same policy line used by AMLO himself, one that has made zero difference to the permitting and operation of open pit mines in the country in year (or so) since AMLO began the messaging.
- Her words “will not award any more authorizations” are either deliberately or accidentally vague, but coming from the head of an Enviro agency may seem as though they pertain to EIA permits. In fact, the “authorizations” targeted by AMLO’s government have been on new concessions (and even then other new projects have been given green lights), so anyone who thinks projects such as (example project mentioned) will hit permitting problems due to a government volte face is simply incorrect, as for one thing nothing has changed and for another, this is about concession awards and not permits for projects (which the very same SEMARNAT has been giving out with no change in policy).
This type of story has become somewhat typical in Mexico in the AMLO years, due to a government that talks a populist talk but when the rubber hits the road, nothing much has changed in the country business-wise. So if you see this story appear in the English language this week, do not be concerned. In fact, you may even consider it a buying opportunity.