Agreement to Examine Environmental Compliance
In September 2025, during a bilateral meeting between Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney, the subject of environmental compliance by Canadian mining companies operating in Mexico took center stage. Carney reportedly requested a list of mining firms alleged to be violating Mexican environmental laws, signaling Canadian willingness to review foreign
operations associated with social or environmental concerns. This move is unusual in its cross-border cooperation and reflects rising political sensitivity around responsible resource extraction.
Pressure from Communities and Labor Movements
The spotlight has been growing thanks to pressure from community-based organizations and labor unions in Mexico, which have long claimed that certain foreign mining entities are flouting environmental regulations, failing to engage properly with local populations, or causing pollution of water bodies and agricultural lands. These groups are emphasizing demands for transparency, remediation of harms, and stronger enforcement. The engagement at the presidential level gives those demands new visibility and opens the door for potential accountability measures.
Implications for Social License and Investment Risk
This development underscores that social license to operate (LTO) is becoming a growing financial and reputational risk for mining companies—even those headquartered abroad. Canadian firms in Mexico may now face closer scrutiny both from Mexican regulators and from Canadian authorities or investors concerned with ESG (environmental, social, governance) performance. For the Mexican government, it signals a tougher stance toward foreign investment: compliance may no longer be assumed but actively demanded. If enforcement follows rhetoric, some operations could be at risk of suspension, litigation, or increased costs to bring operations into compliance.