Reform to the Mining Law is approved in general and in particular by the Senate

The Senate of the Republic approved the opinion to reform the Mining Law with the aim of reserving to the State the exploration and exploitation of lithium, a strategic mineral for the manufacture of electric batteries.

The senators of Morena and their allies generally endorsed the proposal by President Andrés Manuel López Obrador, which had been approved by the deputies last Monday, with 87 votes in favor, 20 against and 16 abstentions.

Subsequently, after approximately three hours of discussion, the legislators of the Upper House endorsed the reserved articles of the opinion with 76 votes in favor and 45 against.

In accordance with López Obrador’s policy, this reform leaves the exploitation and use of lithium in the hands of a state company that has yet to be created. Mexico does not yet produce lithium.

With these modifications, the participation of private parties, whether national or foreign, will be excluded, and the president announced that eight permits to different firms granted by previous governments will be reviewed.

“All the contracts are going to be reviewed, those authorized for lithium (…) it has to be seen if the procedures were followed,” López Obrador said in his morning press conference.

The president announced that the concession to Bacanora Lithuma British company that became the property of a Chinese company and that has the most advanced project, although it is still in the exploration phase.

López Obrador added that some 150,000 hectares were delivered for the exploitation of the mineral during the government of his predecessor, Enrique Peña Nieto.

The lithium It is considered the fuel of the future as it is used for electric car batteries, cell phones and other cutting-edge technologies.

“Lithium is ours,” reiterated López Obrador after celebrating the approval of his project by the deputies.

The head of the Executive sent this initiative to the Congress of the Union after his ambitious constitutional reform on energy matters did not reach the necessary votes on Sunday to be approved in the Chamber of Deputies.

Modifying the Constitution requires two-thirds of the legislators of the biameral Congress and Morena and her allies were unable to get votes from opponents. The mining law, being secondary, needs half of the seats for a reform, which comfortably gathers the president’s party.

lithium potential

The expeditious approval of this initiative by the president, sent to the Congress of the Union on Sunday night, is criticized by the opposition since it considers that it discourages investments.

Meanwhile, experts question the nationalization of a good that is still unknown if it is counted in sufficient quantity for its exploitation and if it will be economically profitable and friendly to the environment.

“There is no information yet on how much lithium there is. There is no certainty that we have a volume of lithium that we could take advantage of,” Jaime Gutiérrez, president of the Mexican Mining Chamber, told Radio El Heraldo on Tuesday.

The largest deposits of this mineral are in northern Sonora, where drug traffickers and other organized crime gangs operate.

The so-called “Lithium Valley” is located in that district, the most advanced project and where it is present Bacanora Lithum.

Only in 23 countries has the presence of lithium been detected and Mexico is estimated to occupy the tenth position in reserves, according to the Ministry of Energy.

Lithium is mainly mined in South America and Australia, with China dominating the supply chain.

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