Mexico gears up for new mining bill, includes taxes to benefit locals

For the first time in years, Mexico will start charging mining companies already operating or planning to start up in the country with royalties aimed at benefiting local communities, reports local newspaper Vanguardia (in Spanish).

The bill, outlined in President Enrique Peña Nieto’s “Pact for Mexico” when elected last year, is expected to reach the Congress in the first half of this year and, according to the newspaper, it is known to include reforms to concessions and mining rights payments. However, it is not clear whether the proposed law will also include requests for royalties.

According to the Pact for Mexico’s website, the new mining regulation will be ready by the second half of the year, with full implementation expected by mid 2014.

The ruling also calls for agreements by mining companies to “respect the traditions and the social cohesion” of local communities, and will ban the use of vertical shafts in coal mining “to avoid further tragedies.”

Currently there are no taxes or levies imposed specifically on the mining industry in Mexico. Companies only pay standard corporate income tax rates, which are determined by the federal government.

Economy secretary, Ildefonso Guajardo Villarreal, told Vanguardia that directing money from mines to communities is key to avoiding conflicts and that, in that respects, the law will benefit present and future operations in the country.

(Image Copyright: holbox, Shutterstock)

RELATED:

Juniors place Mexico among top gold-producers >> >>

Mexico is the most energy secure country – report >> >>

786 0
Latest Stories

Teck announces preliminary settlement at its Elkview operation

Teck announced on Saturday that it had reached a settlement deal with Local 9346 of the United Steelworkers of America to end the strike at the company's Elkview operation. According to a company statement, the parties will recommend the memorandum of settlement to their respective groups. The union ratification vote is scheduled for Thursday, April 7, 2011. If the agreement is ratified, production at the mine could resume by Friday, April 8, 2011.

SIGN UP FOR OUR DAILY NEWSLETTER

Brazil considering iron ore export tax?

Brazil's government is considering creating an iron ore export tax meant to spur investment in local steel production, a leading Brazilian newspaper reported on Friday. Advisors to President Dilma Rousseff have asked the finance ministry to study a measure that would tax iron ore exports and exempt steel exports, the newspaper O Estado de S.Paulo reported on Friday, citing a source in the presidential palace.

China bumps up rare earth export quota

China has increased its 2011 rare earth export quota, says an article by International Business Times: China has set its total output of rare earth at 93,800 tonnes this year, 4,600 tonnes more or 5.16 percent higher compared to last year's, the Ministry of Land and Resources said this week.

Midway Gold looking to go underground at Midway

Denver-based Midway Gold is eyeing an additional underground resource at its Midway project in Nye County, Nevada. The company said on Friday that an NI 43101- compliant technical report updates a 2005 resource estimate that envisioned an open-pit mine. That estimate, prepared by Mine Development Associates, calculated an inferred low-grade resource of 5.5 million short tons containing 215,500 ounces of gold, with an average grade of 0.039 oz/ton.

Gammon Gold buys Capital Gold: BIV

Shareholders of New York-based Capital Gold (TSX:CGC) have approved a merger with TSX-listed Gammon Gold, BIV Business Today is reporting. The approval takes Timmins Gold Corp. out of the picture as a potential buyer of Capital Gold:

Mining Weekly: Closing the skills gap for deep-level mining

SRK Consulting partner and principal mining geotechnical engineer William Joughin tells Mining Weekly that deep-level mining in South Africa is suffering from a severe shortage of qualified rock engineers.
The ever-increasing demand for commodities is resulting in the growth of mining operations, Joughin notes.
“This significant growth is creating the demand for qualified rock engineers, which has yet to be met,” he says.
He adds that, locally, the shortage is exacerbated by rock engineers leaving South Africa to pursue other attractive opportunities in Australia and Canada.