Regulatory Framework for the Mexican Mining Sector<\/strong><\/h5>\n\u00a0<\/strong>The regulatory framework for the Mexican mining sector has undergone some major changes through the years. Under the previous mining legislation, companies were subjected to a complex web of rules and requirements and foreign investors were limited to ownership of only 49 percent of the shares of a Mexican company engaged in mining activities. The recent foreign investment law in Mexico, however, has eliminated those prior restrictions on foreign participation in mining activities and now allow for foreign investors to participate in 100 percent of the shares of mining companies. In addition, the current law requires that mining companies be incorporated under the laws of Mexico, to include exploration or exploitation of minerals under their corporate purpose, and to establish their corporate domicile within the country.<\/p>\nThe federal Mexican Mining Law regulates all mining activities in the country and governs the grant, use, expiration, and cancellation of mining concessions. In addition, mining companies are governed by both the water and environmental protection legislations.<\/p>\n