Mining companies denounce that Mexico’s electricity reform puts them at risk

The Mining Chamber of Mexico (Camimex) denounced that the electricity reform promoted by the president Andrés Manuel López Obrador “Puts at risk” your operations and creates uncertainty for investment.

Camimex questioned in a position that the reform, which will be discussed in Congress, contemplates that minerals considered essential for the energy transition be reserved for the State, as now happens with radioactive minerals.

“This generates uncertainty and puts at risk existing mining operations, the supply of minerals for other value chains, as well as its consequent economic spillover, generation of well-being in more than 690 communities in the country and more than 2.3 million jobs” , he assured.

Mining companies have joined the Mexican business community criticizing the reform that the president sent to Congress on October 1 to limit private participation in power generation to 46% and strengthen the Federal Electricity Commission (CFE).

The initiative also proposes that the energy transition is “in charge of the State” and that lithium is the property of the nation.

“The restriction on the use of any mineral considered ‘essential for the energy transition’ is a factor of uncertainty for investors who intend to develop mining projects in the country,” insisted Camimex.

The reform will impact the mining sector, whose Gross Domestic Product (GDP) decreased 4.61% in 2020, when mining-metallurgical production reached 281,500 million pesos (almost US $ 13,840 million), according to Camimex.

In addition to the direct impacts on mining, the chamber asserted that the initiative “may be an obstacle for the Mexican industry to be sustainable.”

Camimex assured that 34% of the energy consumed by its members comes from clean energies such as wind or solar, which would be relegated with the reform to privilege the hydroelectric plants and fossil sources of the CFE.

“This reform would oblige all the productive sectors of Mexico to acquire energy from the CFE, no matter how dirty, expensive and inefficient it may be. Additionally, the reform would make Mexico less competitive in the international market ”, the group declared.

Hours earlier, President López Obrador defended the reform in his morning press conference, in which he also supported Manuel Bartlett, director of the CFE.

Bartlett has caused outrage from organizations such as the Business Coordinating Council (CCE) for asserting that there will be no compensation against affected companies, which he accused of “a robbery.”

The mining sector asked in its position “a serious and responsible debate.”

“The Camimex calls on the Legislative Power to hold an open parliament, which truly listens to all the expert voices and which reflects objectively on all the effects of this initiative,” he urged.