MEXICO CITY The
Mexican senate has approved a 7.5-percent tax on mining
firms earnings before interest, taxes, depreciation and
amortization (Ebitda) as part of a wider package of tax
There is an additional
0.5-percent charge on sales of gold, silver and platinum,
according to the senate.
The new tax, which
will introduce royalty payments for the first time in
Mexicos history, will come into effect Jan. 1, 2014.
government will take 20 percent of all money raised by the
Of the remaining 80
percent, 62.5 percent will benefit local communities where
mining operations are established while 37.5 percent will be
earmarked for other states with mining activities.
Miners operating in
Mexico currently pay only a charge that is largely based on the
area of their mining concessions. There is no payment on the
revenue or profit generated from their mining operations.
Some mining companies
and associations have expressed opposition to the new mining
These new taxes
"represent a decline in our competitiveness, which will cause a
collapse of 60 percent for the mining program, estimated at $30
billion between 2013-18," Mexican mining chamber Camimex warned
in a statement last month.
mining industry generated $23.12 billion last year, up 14
percent year on year, with investments by mining companies up
43 percent over the same period to $8.43 billion, Camimex
The tax is one of 95
proposals listed in the Pact for Mexico document released in
December last year, the day after Enrique Peña
Nietos presidency began. It is aimed at boosting the
countrys economic growth through structural reforms.
"Taxes paid by mining
concessions here are minimal. It is both logical and necessary
to impose higher rates so that the nation itself can benefit,"
Jose Angel Hernández Puente, treasurer of the National
Mining, Metallurgical and Similar Workers Union of Mexico, told
AMM sister publication Steel First.
Grupo México SA
de CV, one of Mexicos largest mining companies,
didnt respond to requests for comment on the new mining
A version of this
article was first published in AMM sister publication Steel