1. Prospects for Mexico’s Lithium Sector After Reforms to the Mining Law
- Author:
- Fernanda Ballesteros
- Publication Date:
- 07-2022
- Content Type:
- Policy Brief
- Institution:
- Natural Resource Governance Institute
- Abstract:
- The Mining Law reform establishes that lithium exploration, mining and use are activities for which the state is responsible, without the option to grant concessions, based on the argument that they are activities in the public interest. The Mining Law reform leads to the existence of a dual legal system for lithium. On the one hand, the concessions already granted are regulated and monitored by the Ministry of the Economy. On the other hand, exploration and mining that takes place after the reform will be carried out by the state through a state-owned company. The objectives and responsibilities of the state within this dual system are unclear. For the mining and processing of lithium to be an opportunity that translates into benefits for Mexican people, clear, consistent and credible policies are needed. There are challenges in terms of governance, both for the special system created and the general concessions system. At NRGI, we have identified three aspects of governance we believe require analysis: (1) failures in governance of the general system; (2) governance of state-owned companies; and (3) supply chains and value generation.
- Topic:
- Natural Resources, Reform, Mining, Lithium, Energy, and Green Transition
- Political Geography:
- North America and Mexico