VIEW FROM THE TOP |
WEAVING THE ECONOMIC AND SOCIAL FABRIC OF ZACATECAS CARLOS BĂ RCENA Minister of Economy of Zacatecas
Q: What changes can be made to the regulatory framework
to invest the resources. But the communities nearest to the
to boost the mining industry?
mining projects were not always taken into account because
A: Three areas must be addressed. First, the popular
the county government is often far away from them. The new
consultations to begin projects. There must be a clear
formula under discussion includes mining communities to a
definition of what constitutes an indigenous population and
greater extent. It also demands that mining companies be
a native population. Zacatecas has no indigenous population
more involved in the proper use of resources. But companies
registered, so it is hard to know who are native to this region.
feel this is too much to ask, that it goes beyond their
It is crucial to define who to consult and when. Miners usually
responsibilities. The ideal scheme would be focused on the
come to an agreement with landowners before the exploration
communities that are actually close to a given mining project.
stage. Only when they are ready to move on to the next stage
It would make sure that the levied taxes actually return to
of the mining project do they file for a concession. Therefore,
these communities, but in a way that really impacts their
the uncertainty around popular consultations has reduced
development.
exploration investment substantially. Q: How is Zacatecas working to promote mining? Second, the fiscal aspect. Mining companies have adapted to
A: The first aspect of our plan is to fortify small mining
the tax that goes to the Mining Fund. But Mexico is losing its
companies in the state. What often happens is that these
competitiveness because it is impossible to deduct exploration
companies grow to a certain point in which buying them
expenses within a reasonable period of time. Companies must
or forming other types of alliances becomes attractive. This
wait 10 years. Other countries in Latin America are more
will keep happening. The state of Zacatecas is committed to
competitive in this regard. There must be a fiscal incentive
helping integrate small and medium companies, fostering the
where both the state and the companies win and exploration
environment and value chain that makes this possible. Second,
is boosted.
we are supporting large mining companies by upholding physical and patrimonial safety, promoting the best possible
Third, the natural environment must be protected in a way
community relationships and developing supply chains. For
that is also appropriate for business. Water is a prime example
example, we worked with First Majestic to produce social
in this regard. Some people argue that a mining company
programs and monitor safety. The third part of our plan has to
should replace every single drop of water it uses or moves
do with promoting a talented workforce. We have organized
from one place to another. However, it is more reasonable to
highly successful job fairs. Also, we facilitate collaborations
push for a moderate policy. For instance, companies should
between companies and universities. In one case, we partly
not be held accountable for water that is simply drained and
financed a project where Datamine introduced some of its
moved about, but they should be for water used in productive
equipment into the Technological University of Zacatecas.
processes such as lixiviation.
We are working to generate the necessary talent so that the industry remains as local as possible. At our mines there are
Q: How can the Mining Fund be reformed so as to guarantee
very few Zacatecan managers: most of them are from other
wealth is redistributed adequately?
states in Mexico. Compared to salaries in other state mining
A: The great change that is being proposed is that the
industries, Zacatecas’ salaries are the highest in the country.
distribution of resources be exclusive to the Ministry of Economy through the Undersecretariat of Mining. This is desirable. How to deliver the resources is another matter.
Carlos BĂĄrcena was in the state government of San Luis
The way it has been working so far is that part of the money
Potosi throughout his professional career. He promoted the
goes to the mining counties, while another goes to the state
manufacturing industry in the Bajio region alongside GM,
that oversees these counties. Then, a committee decides how
BBVA, USAID and CONACYT
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