April 19, 2022 11:33 GMT
- Mexico’s lower house approved a mining bill Monday afternoon to confirm state control over lithium extraction.
- The bill was fast-tracked by the ruling coalition of President AMLO’s Morena party after the president’s bid to change the constitution to give the state utility control of the electricity market failed on Sunday night.
- As lower house representatives moved forward with the bill, opposition lawmakers left the session in protest, newspaper Reforma reported. The initiative was discussed as presented by AMLO, without having gone through regular committee consideration. The bill now goes now to the senate.
- Despite the president accusing lawmakers who voted against his reform of betraying Mexico, the Mexican peso traded with a bid tone on Monday as the bill’s failure is widely considered a positive for private energy initiatives and competition within the industry. Additionally, the failure should limit the damage from potential disputes relating to USMCA violations.