In Mexico, the exploration and exploitation of minerals may only be carried out by individuals of Mexican nationality, or by companies incorporated in accordance with Mexican law, through mining concessions granted by the Secretariat of Commerce and Industrial Development (SECOFI). The Foreign Investment Act of 1993 allows for the participation of foreign investors in the mining sector. Having recognized that only 20% of the national territory has been partially explored with the consequential loss, infrastructure building and regional development, the cited new statutes freed the restrictions previously imposed on foreign capital in the areas of exploration and exploitation. However, the Mexican government continues to reserve the exclusive rights in the exploration and exploitation of radioactive minerals for the State.

Mexico’s mining activities are governed by four legislative enactments: 1) Article 27 of the Federal Constitution; 2) the Mining Act of 1992, as amended on December of 1996; 3) the corresponding Mining Regulations of 1993; and 4) the Mining Manual for Public Service. Matters of administrative procedure involving entities of Mexico’s federal public administration, whether in mining or in any other areas, are regulated by the Federal Act of Administrative Procedure of 1994.

In order to obtain a mining concession or a mining allotments, the corresponding request must be submitted to the Mining Industry Agencies in the place where the mining lot is located. The application must include all the requirements set forth under Article 17 of the Mining Act Regulations, including: the name of the applicants, the location and area of the lot, reasons for the exploration, among others.