Mexico's Congress opened debate on Monday on an amendment to the country's mining law presented by President Andres Manuel Lopez Obrador which aims to nationalize lithium reserves.
The proposal had been included in a broader bill that sought a constitutional amendment to tighten state control of energy production, but which was defeated in Congress on Sunday.
Mexico currently lacks commercial lithium production but could have potentially lucrative deposits in clay-based soils.The bill has sparked concern it could pave the way for the government to take control of other minerals.The proposal would alter Mexico's Mining Law, passed in 1992. President Lopez Obrador has slammed the law for prioritizing private companies, especially foreign corporations, over Mexican interests.
The company would be created within 90 working days of the bill's approval, according to the text, and the Mexican Geological Service would assist in locating deposits.Close to a dozen foreign companies currently hold concessions to explore potential lithium deposits, according to media reports. Critics of the bill say that the deposits already belong to the state under existing laws and that the proposal will only serve to force out private investment.Reporting by Kylie Madry; Editing by Cynthia OstermanSubscribe to our sustainability newsletter to make sense of the latest ESG trends affecting companies and governments.
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