The Chamber of Mining of Mexico (Camimex), which brings together the main companies in the country's mining-metallurgy industry, warned of the negative impact on the Mexican economy if Congress prohibits open pit mining, which generates 60 percent of the production value.
Recently, the Constitutional Points Commission of the Chamber of Deputies approved the Constitutional Reform Initiative of the President of the Republic, Andres Manuel López Obrador, to prohibit open pit mining.
With this first step, the bill will be like other proposals by the President of the Republic, approved by the Chamber of Deputies and the Chamber of Senators. With its approval and entry into force, Camimex said, more than one million formal jobs will be lost, and it will impact the development of more than 690 mining communities in rural areas.
The national coffers will also be affected with the loss equivalent to $1.63 billion in tax contributions, and it will also generate a contraction of the Mexican economy by 1.0 percent of the national GDP. In addition, Mexico will become an importer of minerals, which would increase international purchases of such inputs by more than 130 percent and the trade balance deficit will exceed $5.0 billion.
"Open pit mining should not be prohibited but encouraged to consolidate Mexico's position as a producer of essential minerals," Camimex said and reiterated its willingness to dialogue with the federal government and all interested parties to find solutions that contribute to environmental, social and economic development.
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