Mexican coal miners will benefit from the latest energy reform in Mexico.
The new law states that exploration and extraction contracts will not need to enter the standard bidding process, instead just a permit from the regulating agency CRE will be required. This only applies to those miners seeking to take advantage of natural gas contained in coal deposits. Companies like Mexatim, Minsa, Carbonifera de San Patricio (CEMEX) and Minera del Norte (AHMSA) are in the list of potential natural gas developers. In addition, considering that natural gas production is profitable from $5 USD per million BTU, no royalties will be paid if the price is under this amount. There are over 100 mining SMEs in the region covered by Piedras Negras and Sabinas in the State of Coahuila. The National Geology Service (SGM) has identified natural gas potentials in this region where fracking operations could start immediately if there was a pipeline infrastructure in place to take the product to point of sales. Per SENER, the Mexican Ministry of Energy the natural gas market will prospectively grow to 11,400 million cubic meters by 2027. For more information contact your local U. S. Export Assistance Center