Proposal to ban open-pit mining advances in Mexican Congress

investing.com 15/08/2024 - 20:02 PM

Mexico’s Congress Approves Mining and GMO Restrictions

MEXICO CITY (Reuters) – A committee in Mexico’s lower house of Congress approved two constitutional reforms that would:

  • Prohibit open-pit mining and fracking
  • Restrict the use of genetically modified corn

These proposals, passed on Wednesday, will be discussed by the full lower house after lawmakers reconvene in September.

Additional Restrictions

The changes also aim to prevent the exploitation of water in areas facing scarcity, allowing extraction only for domestic use in populated regions, as stated in a release on Wednesday night.

These reforms are part of a larger package presented in February by President Andres Manuel Lopez Obrador, which also includes judicial restructuring proposals.

Legislative Process

In Mexico, constitutional amendments require a two-thirds vote in both the lower house and the Senate, as well as support from a majority of local congresses. In the recent June elections, Lopez Obrador’s Morena party and its allies secured a qualified majority in the lower house, falling just two seats short in the Senate.

Opposition to Mining Ban

Lopez Obrador has criticized previous mining contracts with private companies and states that his administration has not issued new private concessions in this sector.

In contrast, the Mexican Mining Chamber (Camimex) opposes the open-pit mining ban, arguing it could lead to a 1% contraction in the GDP and jeopardize around 200,000 jobs.

Genetically Modified Corn Debate

Regarding genetically modified corn, the proposal is linked to an ongoing dispute with the United States under the U.S.-Mexico-Canada Agreement. Under the committee’s reform, genetically modified corn would only be allowed into Mexico for non-human consumption, provided it does not have the capacity to germinate.




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