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Mining concessions in Mexico: tenders, terms, obligations and cancellation

Last verified: 2026-10-26 · Status: Changing

Since the 8 May 2023 reform, Mexican mining concessions are granted only through public tenders run by the Ministry of Economy, to Mexican companies with a mining corporate purpose, which may be 100 percent foreign owned. A concession lasts 30 years, the first five for pre operating work, with one 25 year extension requested two to one years before expiry, and requires an industrial mining water concession, social impact and environmental approvals and a financial guarantee before the title is issued. Where a community lives on the land, the winner must agree land use and pay it at least 5 percent of taxable profit, and concessions are cancelled for two years of inactivity, two years of unpaid duties or lack of water rights.

USD conversions use MXN 18.6638 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 23 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Legal conversions in Mexico use the Banxico FIX, which differs slightly. Conversions are for orientation only. Fines set in UMA use the 2026 daily UMA of MXN 117.31 published by INEGI in the DOF of 9 January 2026.

Key facts

Term of a mining concession	30 yearsLey de Minería art. 15, as of 2026-10-26 · in force
Single extension of a mining concession	25 yearsLey de Minería art. 15, as of 2026-10-26 · in force
Pre operating period within the concession term	5 yearsLey de Minería art. 15, as of 2026-10-26 · in force
Minimum payment to communities living on concession land	5 % of taxable result net of non deductible contributionsLey de Minería art. 13, as of 2026-10-26 · in force
Minimum recycling of treated wastewater at the mine	60 %Ley de Minería art. 27, section XXIII, as of 2026-10-26 · in force
Duty to issue a mining title for a 5,000 hectare lot, 2026	109969.83 MXNLFD art. 63; RMF 2026 Annex 4, as of 2026-10-26 · in force
Foreign ownership cap in Mexican mining companies	100 %LIE arts. 4 to 8 (mining not listed), as of 2026-10-26 · in force

The rule

1. Who may hold a concession. Concessions go to ejidos and agrarian communities, indigenous and Afro Mexican peoples, and Mexican nationals with technical, legal, economic and administrative capacity. A company qualifies if it is incorporated under Mexican law, is domiciled in Mexico, has a corporate purpose covering the mining of minerals under the law, and its foreign ownership complies with the Foreign Investment Law, which sets no cap on mining. Lithium and other minerals declared strategic are excluded, as are radioactive minerals.
Cost to do it: Registering a mining company in the Public Mining Registry costs MXN 3,694 in 2026 (LFD art. 65, section III).
Example: A Canadian junior forms a Mexican S.A. de C.V. 100 percent owned by its parent, with a corporate purpose limited to mining, and registers it with the Public Mining Registry before bidding. / The registry fee of MXN 3,694 is about USD 198.Ley de Minería (formerly Ley Minera), DOF 26 June 1992, reformed DOF 8 May 2023; Constitución Política, art. 27, sixth paragraph, Ley de Minería arts. 10 and 11, 2023-05-08 official text · verified 2026-10-26

2. Tender only. The Ministry of Economy grants concessions only through public tenders that secure the best economic conditions for the State and environmental commitments. It publishes the call in the DOF, issues bases with geological studies, holds a clarification meeting, opens bids for an economic consideration and a discovery premium, and publishes the award in the DOF. Each bidder may file one bid. A community living on the land may match the best bid and then has preference; an adjoining concession holder may also match and win; nobody who already holds two or more concessions adjoining the tendered lot gets it, to prevent hoarding. Anyone with information on mineral potential in a free lot may propose exploration by the Mexican Geological Service under a collaboration agreement of up to five years, and then wins the tender by offering at least 90 percent of the highest bid. Pending applications under the old first come first served system were rejected when the reform took effect.
Cost to do it: Title issuance duty in 2026 for a 5,000 hectare lot: MXN 109,969.83 (about USD 5,892) (MXN 88,668.76 fixed plus MXN 5.3266 per hectare over 1,001; LFD art. 63). An extension costs 50 percent of the table amount.
Example: Two bidders tender for a lot next to an existing mine; the adjoining concession holder bid less but matches the top offer and wins, because the law gives adjoining holders a right to match. / Title duty for 5,000 hectares is about USD 5,892.Ley de Minería (formerly Ley Minera), DOF 26 June 1992, reformed DOF 8 May 2023, Ley de Minería arts. 10 Bis, 13 and 13 Bis; 2023 decree transitory art. Quinto, 2023-05-08 official text · verified 2026-10-26 · changed: The 8 May 2023 reform replaced first come concession claims with public tenders and rejected all pending applications.

3. Term, extension and the 15 business day notices. A concession lasts 30 years from its registration in the Public Mining Registry, the first five for pre operating activities. It can be extended once for 25 years if the holder is not in any cancellation cause, applies between two years and one year before expiry, and holds the permits needed to operate and an industrial mining water concession. After the extension, the holder may bid again for the same lot and has preference if it matches the top bid, for a final non extendable 25 years. Before the title is delivered the winner must obtain federal environmental, labor, energy and social permits and the water concession; each later federal, state or municipal permit must be reported to the Ministry within 15 business days. Concessions granted before the reform keep their original term, but those in protected natural areas or for mercury are no longer extended.
Cost to do it: Extension duty: 50 percent of the LFD art. 63 table amount for the lot size.
Example: A concession registered on 1 June 2026 runs to 1 June 2056; the extension must be requested between 1 June 2054 and 1 June 2055. / For a 5,000 hectare lot the extension duty would be about USD 2,946.Ley de Minería (formerly Ley Minera), DOF 26 June 1992, reformed DOF 8 May 2023, Ley de Minería arts. 14 Bis and 15; 2023 decree transitory arts. Sexto and Séptimo, 2023-05-08 official text · verified 2026-10-26

4. Community, consultation and social impact. Concessions cannot be granted in protected natural areas, zones without water availability, mining reserves, strategic mineral zones or where mining puts people at risk. In indigenous or Afro Mexican territory, the authority runs a prior, free and informed consultation before the title, paid for by the applicant. Where the tendered land is inhabited or occupied, the winner must sign an agreement with the community for land use and pay it at least 5 percent of its taxable result under income tax law less non deductible contributions paid, depositing it in an account the community manages and sharing its tax returns. The winner must also prepare a social impact study and obtain the environmental impact authorization, and post a financial guarantee (insurance, letter of credit, Treasury deposit or trust) for the social mitigation measures before the title is issued.
Cost to do it: Community share: at least 5 percent of taxable result net of non deductible contributions, every year. Consultation costs are paid by the applicant.
Example: A mine on communal land with a taxable result of MXN 400 million and MXN 40 million of non deductible contributions must pay the community at least MXN 18 million a year. / That is about USD 964,434 a year.Ley de Minería (formerly Ley Minera), DOF 26 June 1992, reformed DOF 8 May 2023, Ley de Minería arts. 6, 13, 14 and 27, section XV, 2023-05-08 official text · verified 2026-10-26

5. Operating obligations. For each lot the holder must start works and notify within 90 business days of registration or the end of pre operating activities; pay mining duties; file a yearly report proving works and investments; report accidents within 72 hours; notify the start of operations and the responsible mining engineer; report local permits within 3 business days, private certifications within 10 and contracts with third parties for operating the concession within 20 business days; recycle at least 60 percent of treated wastewater; keep tailings away from protected areas, water bodies and populated zones; hold an approved restoration, closure and post closure program; and report any hydrocarbon or lithium found. Transfers of title need Ministry approval and registration; private agreements alone are not recognized, and transferor and transferee are jointly liable for prior breaches.
Cost to do it: Registering a transfer of title or rights costs MXN 1,847 in 2026 (LFD art. 65, section I).
Example: A buyer of a mining title files the transfer jointly with the seller, pays the registry duty and assumes joint liability for any unpaid duties of the seller. / Transfer registration duty about USD 99.Ley de Minería (formerly Ley Minera), DOF 26 June 1992, reformed DOF 8 May 2023, Ley de Minería arts. 23, 27 and 34, 2023-05-08 official text · verified 2026-10-26

6. Cancellation, fines and crimes. A concession is cancelled for: expiry; unpaid contributions for two consecutive years; missing reports for two consecutive or five non consecutive years; not starting works within one year; no works for two consecutive years; not filing the mine closure plan two to one years before closure; not holding a valid industrial mining water concession; imminent ecological risk not remedied within three months plus a six month suspension; or serious infractions listed in art. 55, such as hiding a hydrocarbon or lithium find. Administrative fines reach 1 percent of total revenue plus 5,000 daily UMA, or 4 percent of annual revenue plus 10,000 daily UMA, doubled for repeat offenses. Extracting without a concession carries 5 to 10 years in prison and a fine of 5 percent of annual revenue plus 10,000 daily UMA; exporting minerals without permits, 5 to 15 years and 5 percent plus 12,000 daily UMA.
Cost to do it: Fixed fine components in 2026: 5,000 daily UMA is MXN 586,550 (about USD 31,427); 10,000 daily UMA is MXN 1,173,100 (about USD 62,854); 12,000 daily UMA is MXN 1,407,720 (about USD 75,425).
Example: A miner with MXN 2,000 million of annual revenue sanctioned under the 4 percent tier pays MXN 80 million plus MXN 1,173,100, that is MXN 81,173,100. / About USD 4,349,227.Ley de Minería (formerly Ley Minera), DOF 26 June 1992, reformed DOF 8 May 2023, Ley de Minería arts. 42, 55, 57, 64 and 65, 2023-05-08 official text · verified 2026-10-26

7. Mine closure. The holder must close its operations through a Mine Closure Plan approved by the Ministry of Economy with the environment ministry's opinion, filed between two years and one year before operations end, and report progress every six months after expiry or cancellation until the plan is complete. A geological and mining report is due within three months after the concession ends. Holders at the time of the reform had 365 calendar days to file the financial guarantee and the closure program for authorization.
Cost to do it: Closure and remediation costs are borne by the holder and backed by the financial guarantee.
Example: A mine planning to stop extraction in December 2030 must file its closure plan between December 2028 and December 2029. / No statutory amount; the plan sets the cost.Ley de Minería (formerly Ley Minera), DOF 26 June 1992, reformed DOF 8 May 2023, Ley de Minería arts. 27 section IX, 61 to 63; 2023 decree transitory art. Décimo, 2023-05-08 official text · verified 2026-10-26

Hectares	Fixed amount (MXN)	Additional per hectare over the lower limit (MXN)
1 to 30	918.24	14.93
31 to 100	1,390.45	27.74
101 to 500	3,409.21	67.51
501 to 1,000	31,832.51	87.96
1,001 to 5,000	88,668.76	5.3266
5,001 to 50,000	112,545.97	3.8181
50,001 and over	285,338.06	3.5209

Mining title duty table for 2026 (LFD art. 63, RMF 2026 Annex 4). Extension requests pay 50 percent.

Worked example

An Australian gold explorer wins a 5,000 hectare lot in a Ministry of Economy tender in 2026. It pays the title duty of MXN 109,969.83 (about USD 5,892), its offered consideration and discovery premium, posts a social impact guarantee, and obtains environmental, water and labor permits before the title is delivered. Its concession then runs 30 years from registration, with years one to five as pre operating.

Step by step

1. Incorporate a Mexican company with a mining corporate purpose and register it in the Public Mining Registry.
2. Watch the DOF for tender calls; buy the bases, attend the clarification meeting and bid an economic consideration and discovery premium.
3. After the award, run the social impact study, support the indigenous consultation if applicable, and obtain the environmental impact authorization and an industrial mining water concession.
4. Post the financial guarantee, sign the community agreement if the land is inhabited, and receive the title.
5. Notify works within 90 business days, report every new permit within 15 business days and file yearly works reports.
6. Calendar the extension window (two to one years before expiry) and the closure plan window.

Common traps

Buying a concession by private contract only: the Ministry does not recognize private transfers until approved and registered (art. 23).
Letting the water concession lapse: it is a cancellation cause (art. 42, section IX).
Two years without works: cancellation (art. 42, section VII) on top of the idle land duty (LFD art. 269).
Bidding for a lot when you already hold two adjoining concessions: you cannot be awarded it (art. 13 Bis).
Hiding a lithium or hydrocarbon find: cancellation (art. 55).

Sources

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