Mexico Mining Review 2019

Page 17

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COLLABORATION, AGREEMENTS TO PROMOTE MINING DEVELOPMENT SALVADOR GARCÍA President of AIMMGM

Q: How will the newly-elected board of directors bolster

through online courses, interactive live webcasts and face-

the association’s role in promoting the development of the

to-face classes. It is supported by the University of British

Mexican mining industry?

Columbia and the University of Arizona. Its training helps our

A: So far, the association’s role has been to witness and

union members remain up to date on key topics and trends

support the decisions that have been made in relation to

in the industry. The fact it is online provides participants

mining in the country. We want to change that role or at least

with flexibility, while also giving the option of face-to-face

lay the foundations for it to be an association that proposes

interaction.

substantial changes that benefit the mining industry in Mexico. Q: What have been the main ups and downs of the 2012-2018 One example of this is the joint agenda we would like to

administration and in what state will the new government

set up with SEMARNAT, PROFEPA and other government

inherit the mining industry in Mexico?

institutions to make the industry more sustainable and

A: From my point of view, the incumbent government never

socially responsible. This is something that society and some

had mining on its agenda and that is one of the reasons

authorities have not understood, perhaps due to a lack of

behind the implementation of the new 7.5 percent duty plus

information or misinformation in the media. Mining is one of

0.5 percent for precious metals. The new government will

the most sustainable and socially-responsible industries in

inherit a battered industry in addition to an excessive tax

the country but it tends to have a negative image not only in

burden compared to other countries. This is exacerbated by

Mexico but globally. We must change this by informing the

the insecurity that permeates our country and the absence of

public of the virtues of mining with facts and evidence.

the rule of law, especially in rights of way disputes. It seems that in these scenarios, the private interest is set aside and

Q: In your experience, how can AIMMGM build an effective

the ejido or landowner is always right, often due to political

bridge between the private and public sectors in mining?

motivations rather than rule of law.

A: The role of the association is to be an interlocutor between the public and private sectors. To do that, we must approach

I do not predict any substantial change in terms of the new

the public sector to inform it of the industry’s importance

administration. It is impossible to tell what will happen under

and requirements to continue driving economic value for the

AMLO’s government but I feel it is important that each of

country. Good communication in both directions is important

the entities in our association plays its part to collaborate

so we can always stay well-informed and able to deal with any

for the best interests of the mining industry in Mexico.

problems that arise. This also gives us the leverage to identify

I would request that the next administration consider

areas of opportunity to boost the mining industry in Mexico.

the value of the mining industry in the socioeconomic development of our country and take that into account

Our main asset is that we represent the mining sector and our

when making policy decisions. For example, exploration

members are the industry’s main decision-makers. One way

should be encouraged throughout the country, which would

that we are able to work toward our common goal of growth

involve reversing the previous fiscal reform and making pre-

for the mining industry is through the association’s integration,

operational exploration expenses immediately deductible

which empowers us in our actions.

for new projects.

Q: What impact does AIMMGM expect the EDUMINE program to have and why is this important?

AIMMGM is the premier association for mining professionals

A: We believe that education is the best means to achieve

in Mexico. The group works toward the technological and

objectives in any field. EDUMINE is an online platform

economic development of the mining sector and counts the

that provides over 200 courses on mining-related topics

country’s top operators and suppliers among its members

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