Mexico will not grant new mining concession titles to avoid speculation in the financial market. The country’s mining industry already has enough concessions to explore and exploit, Mexico’s president, Andrés Manuel López Obrador said recently.
The companies want to have more mining concession titles to speculate in the financial market, he said during a press conference without disclosing further details about the matter. The country has granted 65,534 mining concession titles during the past five administrations.
The Mexican president also said that mining concessions would not be canceled as long as the companies operate with responsibility towards their business and the environment.
The country has around 200mn hectares of land under mining, of which about 117.6mn hectares have being granted to mining companies over the last 36 years for exploration and operations, Obrador told the media.
The announcement came on the heels of the Mexican industry group (Camimex) saying that the industry is expecting an investment of $24.2bn during the current administration if there is an adequate public policy that encourages mining activity.
With these investments and a good economic environment, Camimex said, mining companies could grow and help the country’s Gross Domestic Product reach 3pc.
Mexico is the world’s top silver producer and one of the largest producers of copper and gold.