A committee in Mexico’s lower house of Congress passed two constitutional reforms on Wednesday that would prohibit open-pit mining and fracking.

The proposals would also prevent the exploitation of water in areas of scarcity — with the exception of extraction in populated areas for domestic use — and will be taken up for discussion by the full lower house when lawmakers return to session in September.

They’re part of a wider package of constitutional changes originally put forward by President Andres Manuel Lopez Obrador in February, which also includes restrictions on the use of genetically modified corn and a proposal to restructure the judiciary.

“It is clear that open-pit mining transgresses human rights by affecting the right to a healthy environment and good health,” Lopez Obrador said in February.

“The most significant effects are evident in the communities and towns near project areas, placing them in a situation of vulnerability and inequality.”

In Mexico, any constitutional changes must be approved by a two-thirds vote in both the lower house and the Senate, and by the majority of local congresses. In the June elections, Lopez Obrador’s ruling Morena party achieved a qualified majority and was just two seats short in the Senate.

Former Mexico City Major Claudia Sheinbaum, who is due to replace Lopez Obrador as president in October, has previously said she will adopt the proposals as part of her platform.

Since taking office in 2018, Lopez Obrador’s administration has not granted any new open-pit mining concessions through de facto mechanisms, arguing his predecessors had given too many approvals.

“His policy of not granting new mining concessions has crippled mining exploration in Mexico and has caused the biggest negative impact on the industry,” Douglas Coleman, director general of the Mexican Mining Centre, said in February after the open-pit ban was proposed.

“The effects of this decision will be felt for years to come.”

Of the country’s roughly 250 operating mines, 97 are open-pit. They include major assets such as Newmont’s (ASX:NEM) Peñasquito, Fresnillo’s (LSE:FRES) Herradura, Torex Gold’s (TSX:TXG) El Limón-Guajes, and Agnico Eagle’s (TSX:AEM) Pinos Altos mines.

“It’s no secret that this administration has been averse to mining,” Jorge Ganoza, CEO of Fortuna Mining (TSX:FVI), which operates an underground silver and gold mine in southern Mexico, told Reuters. 

“If it were to continue, we would certainly see Mexico lose ground compared to other mining nations.”

Fortuna has cut its investments in Mexico from almost 50% of global spending to just 10% in recent years. That trend, said Riyaz Dattu, an attorney who advises Canadian companies on international arbitration, could continue if the proposals take effect.

“Companies cannot operate without an understanding on whether their investments will hold true in the next 10 to 20 years,” Dattu said. 

“This will drive investments away.”

Write to Oliver Gray at Mining.com.au

Original Article: https://mining.com.au/mexico-advances-proposed-open-pit-mining-ban/