Environmental Regulatory Changes //
Mexico was one of the first countries in the world to pass a specific law on climate change. In 2012, the Climate Change Law made the reduction of national greenhouse gas emissions by 30% by the year 2020 obligatory (subject to the availability of funding and technology transfer). The updated Special Programme on Climate Change (2014-2018) establishes goals, targets, and actions necessary to promote climate change mitigation in the short term, while securing economic competitiveness and allowing time for the development of adaptation strategies.
The first reporting period under this new law was 2015. Any organization with emissions in excess of 25,000 tonnes of CO2e (which included our Guanaceví and El Cubo mines) was required to include this information in its regular annual environmental reporting (along with hazardous waste, spills, discharges, etc.) to the Ministry of Environment. By 2018, organizations reporting above 25,000 tonnes of CO2e will be required to have their 2017 emissions independently audited by an authorized third party.
Additionally, some states in Mexico have planned to impose environmental taxes; as is the case in Zacatecas (the home state of our future El Compas mine), which passed its own “Green Tax”, which came into effect on January 1, 2017. Taxes will be imposed on greenhouse gas emissions, soil and water contamination, and waste storage. The precise economic impact this may have is somewhat unclear at present due to its controversial nature and Federation challenges in Mexican courts.