ARTICLE
13 December 2024

Mexican House Passes Bill To Increase Mining Fees

FL
Foley & Lardner

Contributor

Foley & Lardner LLP looks beyond the law to focus on the constantly evolving demands facing our clients and their industries. With over 1,100 lawyers in 24 offices across the United States, Mexico, Europe and Asia, Foley approaches client service by first understanding our clients’ priorities, objectives and challenges. We work hard to understand our clients’ issues and forge long-term relationships with them to help achieve successful outcomes and solve their legal issues through practical business advice and cutting-edge legal insight. Our clients view us as trusted business advisors because we understand that great legal service is only valuable if it is relevant, practical and beneficial to their businesses.
On November 26, the Mexican House of Representatives passed an amendment proposed by President Claudia Sheinbaum amending the Governmental Fees...
Mexico Energy and Natural Resources

On November 26, the Mexican House of Representatives passed an amendment proposed by President Claudia Sheinbaum amending the Governmental Fees Law which included in the changes, increases to the fees paid by holders of mining concession of the Special Mining Fee and the Extraordinary Mining Fee.

The Special Mining Fee is a contribution made by concession holders to the Mexican government of 8.5%, increased from 7.5%, of the profit made from the sale of minerals obtained through extraction. The Extraordinary Mining Fee only applies to profits on the sale of specific materials such as gold, silver, and platinum, paying an additional 0.5% fee on profits, to be increased to 1.0% with the amendment.

An economic study performed by CAMIMEX, the Mexican national mining chamber, established that in 2023 the mining sector received domestic and foreign investment in excess of US$4.7 billion. Minerals obtained from the subsoil are considered non-renewable natural assets by the Mexican government, making it a priority to maximize state revenues from their extraction.

The Mexican mining sector has attracted the attention of investors, regardless its nominal tax burden of 53%, compared to similar, but more favorable levels in other mining countries such as Peru (40%), Chile (36%), Canada (35%), and the U.S. (30%).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More