Mexican senator to work against proposed changes to mining code

A senator that belongs to the leftist National Regeneration Movement (MORENA) hosted a press conference to announce he is going to lobby his colleagues so that they reject a new bill that proposes changes to Mexico's mining code.

The bill was tabled by Senator Armando Guadiana's own party earlier in the week and it includes tax hikes, environmental and indigenous community protections and the possibility of revoking concessions if certain rules are broken or if the operations are deemed to have a negative social impact. It would also grant authority to the Ministry of Economy to forbid mining activities in certain areas where communities could be negatively impacted.

Guadiana, who is in the mining business and is part of the Upper Chamber's Mining Commission, said that he wasn't consulted about this and argued the changes make no sense as most provisions already exist in other laws.

The politician also said that those colleagues that drafted the bill are looking to generate headlines and are not thinking about the consequences their acts have in the economy and in both local and foreign investments.

As soon as the changes were announced, Industrias Penoles and Grupo Mexico's shares fell for a third straight day on Thursday in the local exchange, while Mexico-focused Fresnillo shares (LON:FRES) closed almost 10% lower and kept falling on Friday.